JOBS have been saved after management at a papermaking firm announced their plant would remain open for the "foreseeable future".

In June, The Press reported that Rigid Paper, in Denison Road, Selby, had told staff involved in its papermaking operation that their jobs were at risk due to rising gas costs.

More than 85 positions at the factory were on the line, although Rigid Charta, also based in Denison Road, and Rigid Corrugated, based in East Common Lane - which are part of the same group - were not affected.

Mill manager Phil Woolley said: "We have been in consultation with our workforce regarding closure throughout the previous seven week period.

"During this time, however, we have actively sought a means of rescuing the operation. It is with great pleasure therefore that Rigid Group can confirm that as a result of its activities - and in light of favourable changes to its economic position - it has reviewed its proposal to close, and has decided to continue papermaking for the foreseeable future."

He added that operating conditions would remain difficult and that he expected energy costs to continue to be the dominant factor affecting profitability.

Selby MP John Grogan said: " I'm delighted that Rigid Paper, which has long been associated with Selby's industry, is going to continue.

"I hope it's as much a part of the future as it was of the past. I met with Pierre Macharis, the chief executive of VPK, Rigid Paper's Belgian parent company, on Friday in the House of Commons.

"I think it is to his credit that the firm is staying open. Without a parent company that was willing to wait a bit longer for some better times, it would have closed.

"Rigid Paper loses money during the winter because of high fuel prices, but in the summer it is a more profitable outfit.

"I promised Mr Macharis I would continue to make representations to ministers regarding gas prices and also various other issues affecting the paper industry, in order to try to ensure that they have slightly easier trading conditions.

"I think they have another tough winter, with high industrial gas prices, ahead of them.

"I think after that, gas prices will come more into line with European levels, as we get more storage capacity."


Plant saga

December 2, 2005 - Rigid Paper suspends production at its Denison Road factory due to soaring gas prices.

December 8 - Production resumes as gas prices began to fall.

January 12, 2006 - House of Commons debates energy supply, Selby MP John Grogan tables an Early Day Motion voicing concern over gas price rises. Bosses at Rigid Paper decide on a day-to-day basis whether to run the plant.

July 1 - Rigid Paper announces a consultation process, which "is likely to lead to a closure of the paper-making operation".

July 7 - Selby MP John Grogan meets Rigid Paper bosses to discuss the proposed closure.

August 22 - Rigid Paper management announces its papermaking operation will remain in business for the "foreseeable future".