MORE than a hundred people will lose their jobs after a long-standing paper mill announced plans to close.

Manufacturing ceased at Sappi paper mill, Feniscowles, Blackburn, yesterday, after 133-years of production on the site as the company struggled with ‘over capacity’ and rising energy costs.

Local councillors said the redundancies were a huge blow to the area, especially in the run up to Christmas.

The plant employed 119 people but this will drop to a skeleton staff of 23 until the end of December. The factory will close completely by the end of March next year.

Mill director Willy Heckers said: “We negotiated a reduandancy package with the workforce and we are going to release many of them from this week.

“The main reason behind it is over capacity at our European sites and the increase in the cost of raw materials which have very much impacted on the profit of the plant.”

A 90-day consultation on the proposed job cuts began back in August as the company moved to offset rising costs.

Sappi took over the paper mill in 1990. Formerly known as the Star Paper Mill, there has been a paper factory based at the Feniscowles location since 1875.

Sappi produced coated wood free paper at the Blackburn factory and employed 250 people at its peak.

Mr Heckers said no decision had yet been made over the future of the land and discussions would begin following the eventual closure.

Coun Alan Cottam, a ward councillor for Livesey and Pleasington, said the council would try and ensure that the mill site would remain a place of employment if potential development took place.

He said: “It is a devastating time for the employees. I don’t think a proper business plan had been thought out relevant to the international market.

“The site is an industrial zone and if it does get sold then maybe it can be used as a place for jobs in the area.”