Crisis talks are to be held between the Scottish Government and Fife Council to tackle the aftermath of Monday’s devastating Tullis Russell news.
The Glenrothes company has plunged into administration, with the immediate loss of 325 jobs.
A joint taskforce for Fife has been established, co-chaired by the Scottish Government and Fife Council, with the Deputy First Minister John Swinney leading for the Scottish Government.
First Minister Nicola Sturgeon said: “I am very concerned to learn of the job losses at Tullis Russell in Markinch. This will be a deeply anxious time for the workers, their families and the local community.
“Scottish Enterprise officials are working with the company right now to explore all possible avenues for support but given the potential impact of this news, I am announcing the immediate formation of a taskforce.
“This will bring together key organisations to support economic growth and employment across the area, with particular focus on Glenrothes and central Fife.
“It will work with the administrators to try to secure an alternative owner and it will look for ways to help mitigate the effects of job losses by putting in place appropriate support for workers to help them back into new jobs and training.
“This taskforce will work alongside the efforts of our initiative for responding to redundancy situations, Partnership Action for Continuing Employment (PACE).
“Through providing skills development and employability support, PACE aims to minimise the time individuals affected by redundancy are out of work.
“I know that people in Markinch and across central Fife will be worried. I would like to assure them that the Scottish Government stands ready to help in any way we can.”
Council leader David Ross said he was saddened by the announcement.
He added: “This is a devastating blow, not only for the workforce and their families but also the communities of Markinch, Glenrothes and mid Fife.
“We will be doing all we can to help those who have lost their jobs today and will be putting measures in place to help support them and their families.
“On behalf of Fife Council I will be co-chairing the taskforce and will work closely with the PACE initiative and other government agencies to minimise the impact of today’s announcement on the workforce and their families, the local communities affected and other supply chain companies.”
Lena Wilson, chief executive of Scottish Enterprise, expressed “extreme disappointment” at the news.