Historic papermaker announces Overton Mill closure

The mill has been in Overton, Hampshire, since 1922

An historic papermaker has announced the closure of its banknote paper mill business, with 300 jobs likely to go.

Portals has been producing banknote and security paper for more than 300 years and opened its Overton Mill site in Hampshire in 1922.

Its biggest customer has been Basingstoke-based company De La Rue, which designs and prints banknotes.

However, De La Rue has announced it was terminating its contract with Portals in a bid to cut costs.

Portals said that despite substantial investment since 2018, the Overton business had become unviable.

Its other UK paper mill at Bathford in Somerset, which makes security papers including those used in passports, would not be affected, it added.

'Devastating blow'

In a statement, it said: "Following the global [coronavirus] pandemic and other recent world events we have seen a significant adverse impact on our banknote paper business.

"It is also clear that the change in the strategy of our largest customer, De La Rue plc, and the rising input costs specifically of energy, all in the context of the highly price competitive banknote paper marketplace in which we operate, means that our banknote paper business at Overton is no longer viable."

Portals said it intended to wind down the Overton operations "with as little disruption as possible", fulfilling its obligations to customers, employees, suppliers and creditors.

Kit Malthouse, MP for north-west Hampshire, said it was a "devastating blow for Overton, Whitchurch and the surrounding area where the history and livelihoods of so many families have been bound up with the 300-year history of Portals".

He praised the company's management for their "strong sense of duty to their workers" and added that "an orderly wind down, with a generous redundancy package and outplacement support, is of course preferable to going bust".