UK recovered paper processing drops in 2008

Just below four million tonnes of recovered material was used by the mills in 2008, which was 1.3% less than the amount used in 2007.

This suggests that the proportion of UK paper and board produced from recovered materials increased in 2008, despite the difficulties faced by the sector as a whole.

Last year saw the closure of four UK paper and board mills, as well as a further three mills launching consultations on their future plans – threatening to reduce the UK's paper production capacity by 675,000 tonnes-a-year.

The trade body for the paper industry also predicted that, while domestic paper and board production would fall further in 2009 – from five million tonnes last year to 4.7 million tonnes – the amount of recovered paper and board used would remain around the same levels as in 2008.

Difficult

Commenting on the domestic recovered paper situation, the CPI's recovered paper sector manager, Peter Seggie, said: “2008 was again a very demanding year for the UK paper and board industry and the four closures, and three current consultations, are a reflection of the difficult time the industry is still having in securing profitability.”

“We hope the planned new paper and board making capacity in 2009 and 2010 will reverse the decline in paper and board manufacturing and secure a better outlook for the industry, particularly in terms of domestic paper and board recycling. All the planned new UK capacity is based on 100% recovered paper and board,” he added.

Later this year, German company Palm Paper is set to open one of the UK's largest paper mills, with a 450,000 tonne-a-year input capacity, near Kings Lynn in Norfolk (see letsrecycle.com story).

Overseas

The fall in domestic usage of recovered paper was accompanied by a small increase in paper being exported for reprocessing, to 4.7 million tonnes, with 76% of the material ending up in the Far East.

Mr Seggie criticised the UK's continued “excessive reliance” on sending the majority of its recovered paper and board overseas, and the “negative” press this led to when export prices by a lack of demand from key markets including the Far East (see letsrecycle.com story).

And, he said: “The market developments towards the end of 2008 show how vital it is that the UK retains a strong paper and board manufacturing industry to ensure that there is a reliable internal market for recovered paper and board recycling.

“Despite the planned new investments, the UK will remain one of the smallest producers of paper and board in Europe relative to its consumption of paper and board products. CPI calls upon the UK government to provide more encouragements for investment in UK paper and board manufacturing,” he added.