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WRAP invites bids to fund new 300,000 tonnes newsprint recycling capacity

WRAP – the Waste and Resources Action Programme – has today confirmed that it is inviting companies interested in building new newsprint capacity to submit expressions of interest by August 10.

Contrary to some forecasts in the paper industry this week, the aim of WRAP at this stage is to use a tonnage in excess of 300,000 tonnes of waste paper in a newsprint plant rather than in the production of packaging or other materials. The new capacity, says WRAP, will come on stream, by 2003.

Confirmation of the proposal for a newsprint plant means that there remains a further 200,000 tonnes of used newsprint to be targeted by WRAP which says it is looking to deliver a 500,000 tonnes a year increase in newspaper recycling.

The funding for the new capacity will be limited to no more than 50% of the total value of the project and will be available through a competitive procedure.

Among the rules for the project are that the reprocessing facility must be in the UK and the project can involve one or more facilities provided by one or more developers. But, industry experts say that more than machine might not be competitive internationally.

The plant, or plants, must use an “agreed tonnage of waste paper per annum recovered from the municipal waste stream as raw material input for the duration of the life of the facility.” Implying that the proposal for the plant could come from an existing company, WRAP says that the agreed tonnage must also be more than the aggregate amount used by the successful bidder in a previous calendar year in its newsprint manufacturing facilities in the UK.

Aylesford

Favourite to build a new paper machine to take in used newsprint is Kent-based Aylesford Newsprint which is owned jointly by SCA Graphic Paper of Sweden and Mondi Minorco Paper. Currently Aylesford Newsprint recycles 450,000 tonnes of used newspapers and magazines, producing 370,000 tonnes of newsprint. Some 300,000 tonnes of this comes from its PM14 papermaking machine which was installed in 1995 as part of a 250 million mill expansion scheme.
For Aylesford, the project will need to be carried out at a rapid pace because of mills already planned or under construction on the Continent. However, Aylesford does have detailed plans for a new machine at its current plant which would see the removal of an older machine. WRAP appears to be aware of this, saying in its call for expressions of interest that “reconfiguration of existing facilities will be considered in the same way as other proposals”.

Applications for further information should be made to: Justin French-Brooks, WRAP, The Old Academy, 21 Horse Fair, Banbury, Oxon OX16 0AH, tel: 01295, fadx: 01295 819911, email: Justin French-Brooks

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