A former papermaking settlement straddling the border between Fife and Clackmannanshire, Kilbagie is situated a mile (1.5 km) to the north of Kincardine. The papermill was the initiative of James Alexander Weir in 1874. The mill passed through various owners, including Gestetner Papers Ltd (1969) and the Pratt Group (1987). It was the headquarters of the Inveresk paper-making company from 1997 and then sold to the LPC Group in 2002. Having lain empty since 2004, it was sold to the waste-management company Oran in 2007. Nearby is a stone quarry operated by Tillicoultry Quarries. In 1787 the first threshing machine in Scotland was erected by George Mackie on the farm at Kilbagie and in the latter part of the 19th century the Kilbagie distillery was reckoned to be one of the largest in Scotland. It was connected by canal and tramway with Kennetpans.

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