Tullis Russell Group marks 18 years of successful employee ownership with special roadshow event

Co-operative Development Scotland and Tullis Russell Group hosted a special event at Tullis Russell, Markinch, Fife, today [Friday 16 November] to explore how employee ownership has boosted business performance.

In 1994 the Scottish paper and board manufacturer became majority employee owned. The innovative arrangement saw ownership transfer to staff and unlock capital for the family that had owned most of the business since 1809. The move meant the family did not have to sell their business to a rival; thus safeguarding both its independence and workforce.

Tullis Russell has an annual turnover of £177m and employs 730 staff. It has thrived since becoming employee owned and recently secured a three year committed facility for £7.5m from Lloyds Banking Group which will provide a stable and secure platform for further strategic development of the group.

The group manufactures high quality printing grades and specialist papers through its two companies, TR Papermakers and TR Coaters, which operate from sites in Fife, Cheshire and one in South Korea. There is also a distribution company in China.

At the event Chris Parr, chief executive Tullis Russell Group, explained how employee ownership has helped boost company performance in tough market conditions.

Sarah Deas, chief executive, Co-operative Development Scotland, said: “Employee ownership offers the ideal exit strategy for company owners who want to retain the independence of a much cherished firm. It is the solution to the succession question faced by many businesses across Scotland.

“There is growing interest across Scotland in employee ownership with more companies now adopting this business model. Our programme of roadshows has allowed us to showcase a better way of doing business in the International Year of Co-operatives.”

Chris Parr, chief executive, Tullis Russell said: “Our family business was established for 185 years before it became majority employee owned in 1994. Becoming employee owned meant we did not have to sell the business to a rival, which safeguarded both our independence and our workforce.

“Because our employees are the shareholders in the business, rather than outside investors, they are more engaged and productive as a result. This has made a big difference to Tullis Russell.”

Murdo Fraser, Conservative MSP for mid-Scotland and Fife, who attended the event, said: “I was delighted to have the opportunity to meet with Tullis Russell. It was interesting to hear first-hand from staff the benefits of becoming employee owned.

“Tullis Russell is a major employer in Fife and plays a vital role in supporting the local economy. I hope that other companies in Scotland will consider the employee owned business co-operative model as a means of delivering growth.”

This is the seventh and final event in a series of roadshows as part of the UN’s International Year of Co-operatives 2012 to celebrate the success of co-ownership in Scotland.