A PAPER mill has stopped production amid fears of job losses, just months after a £40 million investment programme was completed.

But bosses at Sappi Europe hope the move is a short-term measure and are confident business will pick up soon.

A seasonal drop in demand for high-quality paper led to Sappi Europe's Blackburn mill ceasing production last Thursday, manager Doug Reid has confirmed.

And he said managers have talked to union officials about possible future redundancies

"We are really looking at this as a short term situation," he said. "It's fairly normal for this time of year."

Mr Reid said there was less demand for the paper it produces for magazines and mail shots during the summer months and he expected business to pick up fairly soon. "If it is a longer term situation, which we believe is very unlikely, we would have to lay people off but it's the last thing we want to do."

He has held meetings with the Graphical Paper Media Union and other unions about possible redundancies and said the unions were responsible and constructive.

Staff are now working on machinery maintenance during the production shutdown.

The Feniscowles mill employs 260 people and recently benefited from a £40million investment programme and rebuild of the paper machinery which was officially opened last September.

South African-owned Sappi recently sought planning permission to develop a neighbouring site, the former Sun Paper mill, which was shut down in 1992 by the Scandinavian SCA group with the loss of 160 jobs.

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