And, it has now emerged that the company has had some discussions with the Waste and Resources Action Programme about funding support. Plans for the mill emerged earlier this month (see letsrecycle.com story)
A number of paper industry experts have told letsrecycle.com that they were surprised that a newcomer to the market was actually proposing such a project. One remarked: “We have seen suggestions for new mills come and go in the past and until there are further developments in this project there will be an element of scepticism as to whether it will really be built.”
” We would welcome new investment in UK-based newsprint reprocessing capacity and are encouraged by the developments at Ecco Newsprint “
– Jennie Price, chief executive, WRAPOne analyst commented that all of the three existing mills run by Aylesford Newsprint, Abitibi-Consolidated and UPM-Kymmene, could find space for a new paper machine.
Another expert remarked that there was some potential for the new mill at Wilton, between Redcar and Middlesbrough because of the fact that the UK used just over two million tonnes of newsprint per annum and that less than half of this was manufactured in the UK – all UK newsprint production has either a 100% or high recycled content.
WRAP
WRAP has had talks with the company but large scale support for the project is thought unlikely because the organisation would probably have had to seek tenders for a new mill and this is not in its plans.
Jennie Price, WRAP chief executive commented: “Clearly we would welcome new investment in UK-based newsprint reprocessing capacity and are encouraged by the developments at Ecco Newsprint Ltd. WRAP’s role is only to become involved where there is clear market failure and this does not appear to be the case in terms of the major part of the investment here.
“However, the Recycling Fund, managed on behalf of WRAP and its investment partners by Impax Asset Management, is negotiating with Ecco Newsprint Ltd over the possible investment of additional development funding for Ecco.”
Industry
Within industry, Aylesford Newsprint finance director Donald Charlesworth said: “Aylesford Newsprint is aware of reports that there is the possibility of a new newsprint plant being built in the UK. Given the scale of newsprint imports into the UK there may well be scope for further capacity in the domestic market so it will be interesting to see how this develops. We are an established and efficient producer of premium quality newsprint so while we would never be complacent we have no fear of competition.”
Ron Humphreys, managing director of Abitibi-Consolidated Recycling Europe at the Bridgewater mill said: “In general terms the UK is a net importer of newsprint. There is room for new capacity to be built in the UK for new production but this would have to displace imported material.”
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