Receivers cited the combination of a slide in softwood margins and major recent investment for the financial problems of Rammerscales Sawmills Ltd of Lochaben, near Lockerbie.

Tom Burton and Roger Griffiths of chartered accountant Ernst & Young were appointed last week as joint receivers at the mill. They have since laid off 30 employees, keeping on a maintenance team of eight management and staff.

The business has been put up for sale as a going concern.

Rammerscales, which produces timber primarily for the UK pallet industry, has been in business for 40 years. Until last year it ran a 300m³ per week capacity mill, but then started work on a new unit, fitted with mostly reconditioned machinery, with a further 350m³ capacity. According to Bruce Cartwright of Ernst & Young’s Edinburgh office, this is when the company began to run into difficulties.

&#8220The construction of the second mill and the associated costs of commissioning at a time when there was growing pressure on softwood margins had a substantial impact on overall results in 2000”

‘The construction of the second mill and the associated costs of commissioning at a time when there was growing pressure on softwood margins had a substantial impact on overall results in 2000,’ he said.

He added, however, that the £1.5m turnover company still had ‘some good, long-standing customers’ and was a viable operation.

Several prospective buyers have already visited Rammerscales and the receivers are hoping for an early sale.

For details, contact Mr Cartwright on 0131 7772327.