Forscot is to be wound up after announcing it will not proceed with plans to develop a forest products processing plant at Invergordon, Scotland due to funding problems.

The Alness-based company had originally planned a £1bn integrated pulp, paper, sawmill and biomass plant in the Highlands. The original plans were revised to focus on pulp and energy production with potential for expansion to include the sawmill, but a lack of funding so far and the current economic climate affecting the prospects of future funding forced it to scrap the entire project.

The company had secured some £700,000 of funding for phase one of the project, which included research and initial planning and environmental assessments.

“Despite the best efforts of the directors, we have been unable to secure funds for the second stage of the development,” said chairman Ed Gillespie.

“As we are unlikely to find any new funding in the foreseeable future, we have regrettably decided not to pursue the project further.”

Funding issues have beset the project since the early stages, although in 2006 Forscot managing director Tharald Frette told TTJ: “We will get there – of that there is no doubt”.