We have another big advantage with three mills behind us in the existing market which means we can use our experience well
Dr Wolfgang Palm, Palm Paper
Granting of the permission, with some conditions, was given yesterday (November 20) at a special meeting of King's Lynn & West Norfolk borough council.
As a consequence of the decision, Palm is now thought to be leading a field of three proposals for new newsprint machines, which will use hundreds of thousands of tonnes of
recovered newspapers and magazines as their feedstock.
Industry sources suggest that the privately-owned Palm Paper is now most likely to be the project that goes ahead first, with others possible over the next five years.
The company has experience in the sector having built three mills in Germany. Earlier this year company chief Dr Wolfgang Palm told letsrecycle.com: “We have another big advantage with three mills behind us in the existing market which means we can use our experience well.”
Currently the UK has recycled newsprint mills run by AbitibiBowater at Ellesmere Port, Aylesford Newsprint in Kent and UPM Shotton in North Wales. Beyond the tonnages used in the UK, surplus recovered newspapers and magazines are exported.
Rivals to Palm for construction of a new mill are newcomer Ecco Newsprint, which has proposed a plant at the Wilton Park on Teesside, and Aylesford Newsprint which rather than building a new mill, would install a new machine at its existing site in Kent.
Assuming that Palm moves ahead swiftly with the project, local authorities now look likely to see increases in the payment they receive for used newspapers and magazines from the 2008/09 financial year.
One paper industry expert said: “Councils can look forward to signing contracts at higher prices and there will be more competition among the UK waste management companies and paper merchants for newspapers and magazines under the council contracts.”
Norfolk mill
The Palm development is proposed for a 52 hectare site south of the A47 trunk road which formerly housed a British Sugar beet factory. The paper mill would produce 550,000 tonnes of newsprint per year from 630,000 tonnes of recycled newspapers and magazines.
Few objections were received to the King's Lynn mill with the East of England Development Agency describing it as “an important application with the potential to create 150 jobs”.
Objections to the project centred mainly on its impact on wildlife and the Norfolk Wildlife Trust expressed concern that the aquatic environment would be harmed and in particular the local water vole population threatened.
Future UK mills
If Palm does become the first new machine to be built, some in the paper sector consider there is room for another machine or mill in the UK within the next 3-5 years.
Ecco Newsprint is still pressing ahead with its plans for Teesside and a spokesman told letsrecycle.com that the financial process was “proceeding well”.
Should Ecco gets its project off the ground first, Palm might have to reassess the situation, although company chief Wolfgang Palm has emphasised the company's commitment to the development.
Aylesford Newsprint is still reviewing its options for a new machine and further reports on the project are to be considered by the company soon.
And, Palm Paper has signalled that it might even want to build a second machine at King's Lynn. The planning report to the council's development committee yesterday said: “The proposal also offers the realistic prospect that the company will construct a second production line in approximately five years of the commencement of production of the first line.”
Factors supporting Palm's development are thought to include good connections with potential purchasers of its newsprint, including News International which publishes papers such as the Times and the Sun.
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