But, Ecco is facing competition from at least two other potential developments including the possible involvement of a major newspaper publisher in a plant.
 The Wilton International site outside Middlesbrough, where Ecco Newsprint is aiming to start up a new newsprint operation in 2009 |
The other two developments are at Aylesford Newsprint in Kent, and a separate project, east of London.
Aylesford has already confirmed that it is updating its plans to build a second machine at its site in Kent, where it already produces 400,000 tonnes of recycled newsprint each year (see letsrecycle.com story).
Details of the third project are still to be officially unveiled, but it is thought that there is interest in building a paper machine close to London, possibly in the Purfleet area of Essex. A Norfolk location is also thought to be an option. NOTE: added May 17 – Norfolk location chosen by Palm Paper, (see letsrecycle.com story)
The rush to build a machine in the UK has come about because of the high level of imports of material and availability of used newspapers. And, with a number of closures of newsprint machines across the world and the price of newsprint rising, some newspaper publishers are thought to be anxious to ensure that they improve their security of supplies in the future.
Associated Newspapers, which produces the Daily Mail and other titles, is believed to be particularly supportive of the Ecco development. Aylesford has a number of customers who are thought likely to welcome a new machine at its site.
News International
The third plant is seen as being of potential interest to major newspaper publishers in the south east of England, such as News International, which publishes The Times and other papers.
The company's printing operations are moving to Broxbourne in Hertfordshire later this year, and having a mill producing newsprint from recycled material in reasonable proximity could be useful. It is unclear at this stage whether if News International was to be involved in a mill, it would actually be willing to invest or alternatively guarantee orders.
Ecco
Ecco Newsprint's announcement puts it at the top of the tree in terms of moving forward at the present time although city financiers are thought to be well aware of the competition. Ecco said it had signed “a letter of intent with Metso Paper Inc, to purchase a very efficient, environmentally important and highly productive PM1 newsprint line for Ecco’s new recycled newsprint mill in Teesside, which is to be started up in the first quarter of 2009. The letter of intent includes an order to start engineering work.”
Ecco has already been granted planning consent by Redcar and Cleveland borough council for construction to start at Ecco's site at Wilton International on Teesside. The company itself was founded by ex-Aylesford Newsprint chairman Ramsay Hampton in 2004.
Finance for the plant has still to be secured although Ecco hopes to do this by September 2007. Until then the involvement of Metso is expected to be limited to producing designs which will be able to be used in preparing plans for construction.
And, the designs are expected to allow the papermachine to use a higher than normal amount of mixed papers as well as used newspapers and magazines to make the recycled newsprint.
Marcus Moir, chief executive of Ecco said: “We are delighted to have reached an agreement with Metso to provide this state-of-the-art equipment. The mill will be among the most efficient in the world, producing the highest quality newsprint which meets the exacting standards of the new generation of printing presses. Because of its location, Ecco will be ideally placed to offer the very highest levels of service to its major UK customers.”
Mr Moir added: “Metso's activity has intensified as a result of signing the letter of intent with a view to bringing forward a number of engineering tasks, including additional design work for the entire process to minimise the timeline to first production.”
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