ANOTHER 90 jobs are set to be lost in North Yorkshire after one of Selby’s major employers announced plans to close its paper mill.

Phil Woolley, mill manager at Rigid Paper, in Denison Road, announced work would be suspended at the plant this week, while a 30-day consultation period got under way.

Further jobs are under threat at Rigid Charta, part of the same group and based on the same site, which managers are considering moving as part of the plant closure.

John Catley, of Rigid Group, said: “The group would like to stress that Rigid Charta is still a profitable business. The group will aim to provide opportunities and continuity of employment for its Charta employees wherever possible.”

Another 100 people were made redundant elsewhere in the county yesterday, at pillow-manufacturing company Dunlop Latex Foam Limited, in Pannal, near Harrogate, which went into administration earlier this month.

Only a week ago, The Press reported that the Sherburn-based Hero Group was winding up its operations in the Selby district with the loss of 90 jobs.

Rigid Paper has been hit by huge increases in the wholesale price of gas over the past three years, with managers only stepping back from the brink of closure two years ago after top-level discussions with the chief executive of VPK, Rigid Paper’s Belgian parent company, who agreed to wait for better economic conditions.

Mr Woolley said the plant, which employs 86 people, including 25 administrative staff, would close in January once an agreement with staff was reached.

He said: “The decision to open consultation is a consequence of the unprecedented volatility in the energy markets experienced by the business throughout 2008.

“During this period, average prices have increased by approximately 145 per cent as compared to the same period in 2007, and despite significant capital investments, the operation has continued to become progressively less economic.”

He said the company was committed to focusing on Rigid Corrugated, based in East Common Lane in the town, which will not be affected by the plant closure.

“The steps proposed today are intended to ensure that the Rigid Group continues to thrive and expand within the VPK organisation,” he added.