High energy prices cost 800 UK kaolin jobs.

French minerals processing company Imerys will cut 800 jobs in Britain next year to restructure its kaolin production in the South West as a result of "devastating" energy prices.

The company, which produces the white pigment that gives paper a gloss, said it would halt production of paper coating grades of kaolin in late 2007.

Christophe Daulmerie, head of the Paris-based company's European Pigments for Paper division, said today: "Energy accounts for a significant portion of Imerys's costs in the UK and with energy prices dramatically increasing over the last year, the effect on its business has been devastating."

Kaolin belongs to a group of clay minerals and is used in the ceramic and paper industries. It will continue to produce paper-filler kaolins for which its natural reserves were best suited.

Sources: http://www.telegraph.co.uk

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