The funding support for the additional capacity is being organised by WRAP – the Waste Resources Action Programme – which has asked the four companies to return tenders by Wednesday September 26 2001.
It is thought that five tenders were originally received including a bid from Scotland. The Scottish bid may have been ruled out on the grounds that it was for the production of super calendered paper which is used in newspaper supplements, for example. Such paper may not have fitted within the WRAP tender brief which specifically calls for the creation of a newsprint reprocessing facility in return for a commitment to utilise an agreed tonnage of waste paper as the raw material input to the facility. The project is seen as a way of helping local authorities to reach their statutory recycling targets.
WRAP’s target is a tonnage in excess of 300,000 tonnes of waste paper per annum with the plant to produce newsprint and be located within the United Kingdom. Furthermore, the agreed tonnage must be in excess of the aggregate amount of waste paper used by the successful bidder in a prior calendar year in its newsprint manufacturing facilities in the UK.
It is expected within the newsprint sector that the economics of the marketplace suggest a single new paper machine would be the optimal solution to reach WRAP’s target. However, reconfiguration of existing operations has not been ruled out and WRAP has also said that the project may involve one or more facilities provided by one or more developers.
Stora Enso is the only outsider to take part in the tender process in that it currently does not produce newsprint with a recycled content in the UK. At present Aylesford uses about 500,000 tonnes of newspaper a year to produce a 100% recycled product with Shotton using about 400,000 tonnes and Bridgewater about 250,000 tonnes in manufacturing in the North West.
WRAP chief executive Jennie Price said: “I am delighted that we have had such a positive response to this initiative from the paper industry. The involvement of four competitors means that this should be a keen competition offering real value in return for the support.”
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