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Arjo Wiggins to axe 280 jobs

Friday 04 June 1999 23:02 BST
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SHARES IN Arjo Wiggins, the world's leading producer of fine writing paper, yesterday jumped more than 8 per cent on news that the group is to axe 280 jobs and close its Dover plant, writes Anna Minton.

The cuts are part of a reorganisation announced by the maker of the Conqueror brand in January and follow the closure in April of the group's carbonless paper manufacturing plant in Cardiff, which triggered 450 job losses.

Ken Minton, executive chairman, said: "This concentration of manufacturing on fewer sites, coupled with the restructuring of these, will lead to substantial gains in productivity and reduced costs."

Analysts pointed to a less inflationary environment creating a new climate for the sector and said the restructuring was realistic and did not compromise production.

Since January Arjo Wiggins shares have risen more than 54 per cent, almost double the increase in the FTSE Forestry and Paper index.

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