Question reference: S6W-11856
- Asked by: Douglas Lumsden, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 9 November 2022
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Current status: Answered by Ivan McKee on 18 November 2022
Question
To ask the Scottish Government what the purpose was of any financial assistance that it, or its agencies, provided to Stoneywood Mill pre-2022.
Answer
Arjowiggins has in the past received SE loans totalling £12m, equity investment of £100,000 and grant funding totalling £163,400.
Breakdown of funding:
£ 12m loans and £100,000 equity* :
- £7m loan/equity in July 2019 to support the management buy-out of the company (comprised of £6.9m loan and £100,000 equity investment)
- £3.5m loan in July 2020 as gap funding required due to Covid-19 impacts
- £1.6m loan in January 2022 to help the company mitigate numerous cost pressures (material costs, energy costs and Covid-19 impacts)
- *PLUS £4,000.091 accrued interest to date (as of September 2022)
- £163,400 in grants (all conditions met so not eligible for claw-back):
- £125,000 environmental aid for predevelopment work on Combined Heat and Power (CHP) plant replacement projects
- £16,000 towards an energy efficiency audit
- £5,000 Financial Readiness grant (pre MBO) to help fund financial projections and investment appraisals for a combined heat and power energy plant on the site.
- £14,808 Workplace Innovation grant (pre MBO) to assist the company with the introduction of a management development programme following a senior management team restructure.
- £2,592 consultancy support (pre-MBO) to explore succession options and explore the feasibility of employee ownership