It is understood that among the companies interested is St Regis Paper Co, the largest producer of recycled paper in the UK. The company currently produces more than 1.2 million tonnes per annum and is part of the David S. Smith Holdings which has nine mills in the UK.
Most of the paper produced by the group is made from recycled fibre which is sourced predominantly from Severnside, the group’s waste paper business.
A spokesman for Tees Valley confirmed that there was interest from the paper sector in the mill project but he declined to comment on reports that St Regis officials had visited the potential site for the mill on several occasions.
He said: “We are promoting the area from that side. We have excellent transport access and also have large supplies of water available. Water treatment plants locally are some of the best in the country and include Northumbrian Water's Tees Estuary project.”
If St Regis did decide to proceed with plans for the mill the Development Company could give some grants for the project. However, more substantial funding, inlcuding European Union monies, could be be arranged by One NorthEast, the Regional Development Agency for the North East of England.
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