£1bn investment sees Shotton Mill become UK’s largest recycled paper manufacturer
A Deeside site is set to become the UK's largest recycled paper manufacturer.
Shotton Mill is the recipient of a £1billion investment, which aims to safeguard 147 existing jobs and create a further 220.
The site was acquired by Eren Holding, a leading manufacturer from Turkey, in 2021.
Deeside is one of the largest industrial parks in Europe, and this investment aims to see the plant recycle wastepaper that would otherwise go overseas or into landfill.
The Welsh Government has also supported the expansion, contributing £13million in funding alongside £136million in support from UK Export Finance (UKEF), the UK government’s export credit agency.
They say the investment will boost the local economy, as well as aiding the UK's transition to net zero and creating jobs in the green industries.
Cabinet ministers from both the UK and Welsh governments will visit the site to meet with members of the Eren Holding group, where they will hear more about the site’s transformation.
Wales secretary Jo Stevens MP said: "Deeside has a long and proud history as one of Wales’ key industrial centres and this significant investment from our two governments will secure jobs and help bring a prosperous future for the area."
Welsh Government economy secretary Rebecca Evans said the redevelopment shows how "commitment to a prosperous, green economy" leads to "investment" and "sustainable jobs", as well as waste reduction.
She added: "Once fully operational, instead of transporting paper waste many hundreds or thousands of miles overseas to be processed it will be turned into recycled packaging here in Wales.
"This, alongside the nature of the technology, means a net reduction in carbon emissions equivalent to emissions from 190,000 homes a year."
Welsh Conservatives' shadow minister for economy Samuel Kurtz MS sad: "This is welcome investment in an important industry.
"It’s now imperative that the company are supported in their transition to ensure value for the taxpayer and that the potential new jobs are realised."
Plans for the plant will see it produce nearly 100% recycled paper, alongside an environmentally-friendly production model where it will purify its own wastewater, recycle and reuse it within the system.
UKEF supported the venture by issuing a guarantee which allows HSBC and Credit Suisse to arrange debt financing for the project.
The Eren investment hopes to boost Welsh and UK exports in paper, with UKEF support offered on the understanding that Shotton Mill will export 10% of its turnover within five years. This is also expected to reduce UK reliance on imports of paper.
Hamdullah Eren, senior board member of the Eren Holding group, said: "Production at our new plant at Shotton Mill will be based on state-of-the-art technology, making this the most advanced paper campus in Europe. Our custom-built plant will deliver sophisticated and sustainable manufacturing solutions well into the 21st century.
"This is the first major Eren Holding cap ex project outside Türkiye and we are delighted to have chosen Deeside as an ideal location to meet our ambitions for growth. We are putting down deep roots on a site of historic industrial significance.
"We believe this new plant will bring prosperity, leadership in our industry, and long-term employment prospects that will be the pride of Deeside, Wales and Türkiye."
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