But, for the plant to move ahead, funding from the Irish Republic government and Northern Ireland, possibly through WRAP, would be needed to tip the scales in favour of investment.
There is currently an overcapacity of tissue production within Europe, partly driven by new mills in Eastern Europe, and the go-ahead for any new mill on the island of Ireland is seen by paper industry experts as down to whether or not large subsidies are made available.
The North South Market Development Steering Group has been carrying out the study for the last two years to see what impact a new paper mill could have in increasing the recycled paper market in Ireland. The study group was set up by the North/South Ministerial Council Environment Sector, and involves senior officials from DOE, Environment and Heritage Service, and Invest NI in the North and the Environmental Protection Agency, Enterprise Ireland, and DEHLG in the South.
” The work contributes to WRAP’s ongoing remit to support the development of commercially viable and sustainable recycling infrastructure.“
– David Powlson, WRAP
The study found that both the north and south Ireland have seen an increased in paper recovery but the majority of it is being exported for recycling. The study says the benefits of a new mill could include stable domestic recycling capacity and new, recycled paper products for the domestic market.
Capacity
The study revealed that a tissue mill was the most likely result as there is already a local market for tissue paper and a mill with approximately a 40,000 tonne capacity could be financially viable.
It also said that a packaging cartons mill is the next ‘best fit’ for Ireland due to the presence of local converting operations.
The study has been split into two phases; phase one covers the development and assessment of various paper mill options and phase two will be assessing private sector interest in the proposal and carrying out detailed economic and financial assessment if there is enough interest.
The study was welcomed by Northern Ireland DOE minister David Cairns and Dick Roche, the Republic’s minister for the environment, heritage and local government.
Mr Cairns said: “I welcome the publication of the study on the feasibility of an all island paper mill. The study provides valuable research and information for businesses interested in investing in this field. I hope that the report will help pave the way for the possibility of greater paper recycling through increased efficiency and added market value on the island of Ireland.”
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WRAP’s paper technical manager David Powlson, said: “WRAP is pleased to have funded this project, which has provided a very clear picture of the paper recycling opportunities on the island of Ireland. The work contributes to WRAP’s ongoing remit to support the development of commercially viable and sustainable recycling infrastructure.”
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