Environment

Rigid Paper, the North Yorkshire-based subsidiary of VPK Packaging Group, has started a consultation process with trade union representatives at its Selby papermill.

In a statement the company said: "The management is forced to undertake this process because Rigid Paper is suffering from the unfavourable conditions affecting the entire paper industry due to the increase in costs, primarily of energy."

Rigid Paper, which manufactures paper for packaging, said that its Selby and Desborough corrugated division will not be affected.

In the 2007 financial year, the output of Rigid Paper was 70,000 tonnes and the firm's turnover was £5.4m.

Rigid Paper employs 86 people, of whom 25 are administrative staff.

VPK Packaging Group is a Belgian packaging group with 26 companies in 12 European countries.