A report on the sector contained within the recently-published Aylesford Newsprint recycling atlas, warns that “unless new production capacity is created, surplus fibre that is collected will need to be exported to markets in Europe and further afield.”
The report notes that there has been plant expansion at UPM-Kymmene’s Shotton mill and that Smith Anderson is increasing carton recycling at its mill in Scotland.
But, the study highlights several factors as to why further expansion may be limited from now on. It states: “There can be no doubt that there is abundant potential supply of recovered fibre to support new mill capacity. However, the markets into which UK producers must sell are highly competitive. The strong performance of the UK economy relative to other European countries, especially Germany, and the exchange rate of the pound against the euro, affect the UK’s ability to compete.”
A further important point made is that any increase in UK capacity cannot be seen in isolation, but has to be seen against total European papermaking capacity and the investment decisions of other papermakers in other countries. As a result of the limited use in the home market, export markets, such as China, will remain major buyers of UK recovered material.
European market
One senior paper industry figure told letsrecycle.com: “We have to fully recognise that the UK is part of the European market in terms of consumption and production. There are a number of important projects on the continent ranging from the new Langebrugge newsprint mill in Belgium to new board making plants in Germany that will be important suppliers to the region.”
And, he suggested that there is also an issue for paper producers in the UK concerning recovered fibre content. “We have to recognise that there is a need for new fibres to come in to the paper stream and so we need to ensure there is still some production using original fibres.”
Aylesford
The Aylesford atlas report says that the “PM15 (paper machine 15) project at Aylesford remains the most likely expansion of newsprint capacity in the UK… There are rumours of a potential new packaging mill. Which could have a capacity of 600,000 tonnes per annum.”
Donald Charlesworth, finance director of Aylesford Newsprint, that while the PM15 site at the mill exists, “there are no plans at this stage for a further machine at Aylesford, although it is recognised that the UK is importing substantial tonnages of newsprint.”
Bridgewater
The Bridgewater mill on Deesside, owned by Abitibi Consolidated, is one mill which has seen investment in the 1990s and some in the current decade. The idea of a new machine there is not thought to be “warm” at present although it is believed that the company has discussed the possibility in the past and has not ruled out considerable future investment.
Board mill
Letsrecycle.com has reported in the past that a potential site for a new board mill, possibly in the north-east of England, had been considered by one of the UK’s largest firms. However, this project is believed to have been shelved for the time being.
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