WEST Somerset’s economy was dealt a major body blow this week when one of its biggest employers – Wansbrough Paper Mill – announced it was to close.

The Watchet site, which currently employs 176 people, has been involved in paper production for more than 250 years but the machines that helped create the town’s wealth could be silenced by Christmas.

D S Smith, which acquired the business from St Regis International in 1986, confirmed yesterday (Thursday) that following a review of the long-term economic outlook for the mill, it was proposing closure.

A spokesman for the company, which is the leading provider of corrugated packaging in Europe, refused to elaborate on the reasons behind the decision.

But staff called to an emergency meeting on Wednesday night on the future of manufacturing at the site were told that lower than expected profits in the last year, ageing machinery and the investment needed to comply with health and safety legislation due to come into force in 2018 were among the factors.

Production was understood to have been temporarily suspended on Wednesday night as shocked workers came to terms with the news.

Although there had been fears over possible redundancies and the mill’s economic performance, a number of staff said the complete closure of the business had come “out of the blue”.

“I don’t think anyone expected the news to be as bad as this,” said one worker, who asked not to be named.

“People have got mortgages to pay, families to look after – this is just devastating.”

D S Smith has now entered into a 45-day period of consultation with employee representatives.

“The process will take into account all possible options for the future of the site,” said the spokesman.

“We will work closely with union and employee representatives throughout the consultation process to ensure the best possible outcome for all parties.

“This announcement in no way reflects the commitment and efforts of our employees who continue to support our business.”

The spokesman refused to comment on whether attempts would be made to sell the site as a going concern or if production would be moved to D S Smith’s Kemsley Mill in Kent, the second biggest recovered fibre-based paper operation in Europe.

Wansbrough is the largest manufacturer of coreboard in the UK.

It also produces lining paper and recycled envelopes and paper bags, as well as backing up Kemsley Mill in plasterboard liner production.

Just over 18 months ago it benefitted from an investment of at least £1.5 million, which included the installation of two new 145-ton boilers to replace an ageing and uneconomic steam turbine.

At the time mill managers said the investment was good news and showed confidence in the business.

Wansbrough Mill was founded by William Wood in 1750, when it was known as St Decuman’s and paper was made by hand.

In 1846 it was taken over by the Wansbrough family who installed paper machines.

Although a fire destroyed most of the mill in 1889, within ten years five machines were back in operation and it was the largest manufacturer of paper bags in the country.

The business was bought by William Reed in 1903 and stayed in his family’s ownership until it was acquired by St Regis International in 1978, eight years later becoming part of the DS Smith paper division.