WRAP issues apology over waste paper prices report

The document, “The determinants of recovered paper prices in the UK” – updated in October 2008 – asserted that one of the UK's three operational newsprint mills was set to close and also made erroneous statements about other newsprint mills.

Now, WRAP has issued an apology and said: “It appears that the market intelligence on which this scenario was based was incorrect and we apologise for any upset or confusion caused by its inclusion in our report.”

Compiled by Fathom Consulting Ltd/Pira International/Moore & Associates for WRAP, the document claimed: “Discussions are at advanced stage to add a further newsprint machine at the Aylesford's operation in Kent; and a further machine at the Palm's new facility in Norfolk. Ecco also plans new investment in a newsprint mill coming on stream by 2010. However, these additions to capacity are likely to be tempered by the closure of Aylesford's smaller machine PM 13 and the complete closure and withdrawal from the UK of Abitibi-Bowater's Bridgewater operation.”

The report was accompanied by a table headed “planned changes” which showed zero production by the Bridgewater mill from 2010, a 200,000 tonne per year increase at Aylesford from 2010 plus 400,000 tonnes from Ecco Newsprint at a plant proposed for North East England.

Aylesford

Most of the information about the newsprint mills appears to be incorrect and based on speculation rather than fact. The Ecco plant has not moved forward and Aylesford has also not proceeded with a new machine.

A spokesman for Aylesford Newsprint commented that the report's comments about it shutting its PM13 machine and constructing a new machine were “definitely incorrect”.

The WRAP report also appears to imply that a second machine was close to being built by Palm in Norfolk – Palm has not even yet started installation of its first machine, which will happen in 2009.

AbibitiBowater

The most serious allegation in the report was the reference to the closure of the AbitibiBowater Bridgewater mill. AbitibiBowater emphasised to letsrecycle.com this week that it had no plans to close the mill and 2008 had seen strong production levels. It is also understood to have written to WRAP highlighting the potentially damaging effect the report could have on its business.

Barry Benson, finance director for AbitibiBowater's Bridgewater Group and a director of AbitibiBowater Recycling Europe, said: “There are no plans at all to look at our business situation and the Bridgewater plant remains an integral part of our European operations. We are also fully committed to selling and importing through the Bridgewater name.”

Mr Benson said the company was concerned about the impact of the report on three levels.

Firstly that December was the time of year when newspaper publishers were agreeing contracts to buy newsprint and a report of this sort could mean they might lose confidence in the company.

Secondly, that the local authorities who have relationships with Bridgewater through recycling collection contracts could have concerns about the stability of the company.

And, thirdly, the company's own employees could be put under a certain strain if they believed there were plans to close the site.

Mr Benson added: “I think they have made certain assertions which are not true without doing the background work. We have had an excellent production year this year, making in the region of 210,000 tonnes of newsprint. Sales have exceeded production so we have reduced our inventory.”

Responding to the concerns raised by AbitibiBowater, WRAP said it had spoken to the company and was delighted to hear it had no intention of closing the mill and that “their valuable capacity for reprocessing newsprint will remain available.”