Tullis Russell, the Scottish premium paper manufacturer which supplies some of Australia’s biggest merchants, has gone into administration, leaving stockists to look for alternative options. The mill was the main supplier of the paper used to print Australian stamps. It was also a major manufacturer of security papers. Coming just a month after the closure of Australian paper’s Shoalhaven security papers mill speciality Aussie printers may struggle for supply. Australia Post will have long term supply held in reserve for it stamps. Stamp paper is only one of multiple products produced by the 206-year-old company, which include packaging paper and boards, security products. Its papers are used by more than 120 security printers and postal authorities throughout the world, with trusecurity stamp paper the primary product. Its water activated gums and pressure sensitive adhesives are market leading. It builds layers of security into these, as well as into the paper. BJ Ball, one of the Tullis paper stockists in Australia, says it will have to look for an ‘alternative strategic partner’ after the news came through that the papermaker was going into administration. Speaking with Australian Printer, Tony Bertrand BJ Ball marketing and business development manager, says it was a ‘shock’ to hear the news. Bertrand says, “We will have to look for alternatives to ensure the paper supply is not affected, but we have no information on what happened and as the week unfolds we will know more. “It will affect us in stocking the product as we stock a few of the Tullis products. It is a matter of alternative suppliers, looking at different markets, finding new strategic partners, who can supply a better or similar product.” The papermaker, based in Fife, Scotland, had been suffering a long-term decline in its market share, racking up losses of $35.4m over the last five years. Speaking with Australian Printer on the condition of anonymity, an Australian source, who directly works with Tullis Russell, says it was ‘sad to see a reputable company that supplies much of Europe and UK’s security and stamp papers, including Australia, go’. “And now that the Shoalhaven mill in NSW is also closing, it will be difficult for the stockists to supply some of the specialty papers that many printers rely on. “As soon as the administrators took over the business, we received a note warning us to not discuss anything about the company, so I can’t give you more details until I get the clearance from KPMG.” Australian Printer contacted Melbourne-based specialty and security stamp printer, Ego Print’s manager of security products, Tim Smith, who did not know that Tullis Russell is now in the hands of the administrators. Smith says, “I didn’t know that they went into administration and I don’t know how many suppliers are out there who can supply similar products. But for us the paper comes with each order that we get from Australia Post. “I would be very surprised if Australia Post did not have a contingency plan in place to ensure the flow of the supply is not affected.” An Australia Post spokeswoman says the mail carrier ‘uses a number of third-party printers’ to print their stamps and products, and that they will ‘work closely with them on the impacts of this announcement’. Chris Parr, Tullis Russell group chief executive, says “It has become clear to the board that Papermakers is no longer a viable business. “Recognising this situation, the group and Papermaking boards concluded that the best chance of protecting jobs would be through a trade sale of the papermaking company to a buyer capable of, and committed to developing the Markinch site. He says the group engaged KPMG to run a comprehensive sales process, and between October 2014 and March 2015 over 72 trade parties considered and ‘subsequently rejected’ the opportunity to acquire the business. This has ‘unfortunately only confirmed that the business is no longer viable’. Parr says, “This difficult position finally became untenable with the papermaking company’s third largest and most profitable customer entering into an insolvency process on Monday 1 April 2015. “The directors of our Papermaking business were therefore faced with no other option than to place the business into administration.’

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