News
BSW Timber Acquires 67 Acre Argo Wiggins Site in Fort William
BSW Timber, the UK's largest sawmilling group, is to acquire the former Arjo Wiggins paper mill site at Fort William. Contracts for the purchase have been exchanged and completion is anticipated during April.
The deal will pave the way for a phased relocation and expansion of BSW's Fort William sawmill, which sits opposite the Arjo Wiggins site on the shores of Loch Linnhe.
BSW plans to invest significantly into the new site as part of a phased expansion programme - likely to create 45 new jobs and safeguard a further 88 at the existing sawmill. The company anticipate that a further 100 indirect jobs will be created within its supply and distribution chain.
The new mill will have more than twice the output of BSW's current Fort William site and has the potential to become the UK's largest sawmill. The expansion is being supported with an aid package of £5.25 million, made up of a £3million grant from Highlands and Islands Enterprise (including a £2m development grant, and £1m HIE productivity grant) and a further £2.25 million in Regional Selective Assistance from the Scottish Executive.
BSW Timber's Chief Executive Paul Barham says: "Since becoming part of BSW in 1988, our Fort William operation has been an important element of the BSW Group's UK production and distribution network. But the size of our current site is a major constraint on growing the business.
"The former Arjo Wiggins site gives BSW the perfect opportunity to invest in the expansion and relocation of our Fort William sawmill.
"We have developed a phased investment plan to ensure solid growth of the business. Ultra modern facilities will help drive our development of value-added and high quality timber products to continue to service our customer requirements and needs in a growing market."
Following initial site clearance and infrastructure improvement, the first development phase will see investment in secondary processing facilities - including kilning, timber treatment, planing and grading. The second phase will include the building of a new sawmill. Following completion, all production will be transferred to the new site.
Mr Barham adds that the expansion plan would be consistent with the log supply and co-product sales market. "We are working closely with key stakeholders such as the Forestry Commission to ensure that log availability is suitable for this phased investment plan," he says.
"BSW has enjoyed an established presence in the Scottish Highlands for more than 40 years, with mills in Fort William and Boat of Garten. For many years before our first mills opened in the Highlands in the mid-1960s, we enjoyed a strong trading history in the local area.
"This has allowed us to build up strong relationships with the local supply chain, and ensures that any planned expansion will be both long-term and sustainable, to the benefit of the whole Scottish timber industry."
Nicol Stephen, Deputy First Minister and Minister for Enterprise and Lifelong Learning says: "BSW's expansion is good news for the Highland economy, bringing welcome new jobs to the area. I am pleased that we have been able to support this ambitious project with more than £2 million in Regional Selective Assistance."
Charlotte Wright, chief executive of Lochaber Enterprise, says: "Lochaber Enterprise and Highlands and Islands Enterprise have been working closely with BSW on this project for some time and we are delighted that it is going ahead."
Mel de Vogue, Arjo Wiggins's Group Financial Director adds: "Following the extremely difficult decision taken last year to close our company's paper making operations at Fort William we have worked hard with representatives of the local community to find solutions for employees affected by the closure.
"In these discussions the future of the site was often raised and it became clear that people were looking for an industrial solution that they hoped would revitalise employment opportunities in the area.
"Our Management Board embraced this message and it became a determining factor in the final selection of our preferred bidder. In this context we are delighted that BSW Timber was successful as they are already well known and trusted locally and I am sure will represent an excellent partner for the economic redevelopment of the area as well as the Scottish timber industry in general".
March 1, 2006
Of course, the simple answer is timber. But timber really is too small a word for everything we do. Hundreds of products, none of them run of the mill. We live it. And, if we could, we'd breathe it too.