Today’s announcement (January 11 2001) which has spread through the recovered paper sector with surprise, incredulity and delight in Shotton, follows discussion about proposed contract terms between Aylesford Newsprint and WRAP.
Shortlist
Last autumn Aylesford and Shotton were shortlisted for the project which was run on a competition basis by WRAP. It was, and is, looking for a project which will achieve a target of an extra 321,000 tonnes of recovered newspapers and magazines being recycled each year by 2004. To help the project WRAP would commit some of its own funding as well as about 17 million of landfill tax credits bringing a total available to between an estimated 20-30 million.
Jennie Price, chief executive of WRAP today emphasised that the decision to switch from Aylesford to Shotton Paper, based on Deesside, North Wales, had been taken after full discussion by WRAP’s board and its panel of experts.
She said that certainty of the project and its timing were issues that had been considered.
Aylesford, has issued a strongly worded statement which hints at the current poor state of world demand for newsprint and appears to suggest that it was still very keen on building a new paper machine to produce recycled newsprint, although the timing needed further discussion. This would imply that it would have preferred to have the machine running at a later date than that proposed by WRAP.
Aylesford
The full text of the Aylesford response is as follows:
“We regret the about turn in WRAP’s position. We believe their decision to replace Aylesford Newsprint as a preferred bidder as misguided and unlikely to deliver optimum value for money.
“The Aylesford project is a much more ambitious project than the alternative and offers the UK a significantly wider range of benefits including the creation of greater UK newsprint capacity, assisting the balance of payments through a reduction in imports, technological and product innovation, environmental benefits and greater job creation.
“We regret the disappointment which WRAP will cause to many people and groups who supported our bid. The basis on which WRAP has proceeded is precipitate and reflects a short term view. The Aylesford board could not accept the effective elimination of all management discretion about the timing of the introduction of a major new paper machine in a volatile market at the risk of jeopardising the success of the project.
“Aylesford has led the way in improving the UK’s recycling rate and we remain committed to this objective. We hope that an opportunity may yet arise to re-engage with WRAP on that basis. The company has a number of choices in the way it develops its business and we will now explore these options further.”
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