The Austrian-owned company is to spend 100 million replacing the existing production lines with a state-of-the-art ContiRoll continuous production line. As part of the plans, it is carrying out a feasibility study to look into increasing the firm's use of recycled wood.
The plant, based in Hexham, uses about 200,000 tonnes of recycled wood a year. Egger supplies furniture manufacturers with chipboard and also makes a range of wood products, specialising in surfacing and decorative finishes.
About 125 million has already been spent developing the 50-acre Hexham site since it was acquired by Egger UK in 1984.
Commenting on the expansion, Bob Livesey, joint managing commercial director at the Hexham plant said: “The new investment would help us to build on our already excellent reputation and consolidate our strong market position, as well as meeting the increased demand of the markets we serve.”
The company is hoping to submit a planning application with its local council in the early part of 2005.
Committed
Egger UK has pledged that it is committed to more recycling through the expansion, but until its feasibility study is complete, it cannot state how much extra chipped wood it would require.
But, Egger UK's production and technical director, Simon Dotlinger said: “It is important that any issues raised by the feasibility study are dealt with quickly so there are no delays that could put our plans in jeopardy.”
At the moment, the company uses chipped recycled wood from local wood recyclers, saw mills and furniture manufacturers, as well its own wood recycling company Timberpak in Leeds. It is thought that some of Egger's investment could be used to expand the Leeds site.
Egger UK might also take advantage of the expansion plans to invest in equipment to treat waste wood to the increasingly high standards required in the chipboard industry.
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