A major investment of over £1 billion in the redevelopment of Shotton Mill in Deeside, North Wales, will safeguard 147 jobs and create a further 220 when fully commissioned, the UK and Welsh governments have confirmed yesterday.
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The announcement comes ahead of the Investment Summit next month which will make clear that the UK is “open for business” as the UK government resets relations with trading partners around the globe and creates a pro-business environment that supports innovation and high-quality jobs at home and supports our mission to deliver growth.
The Welsh Government has provided nearly £13 million in funding alongside £136 million in support from UK Export Finance (UKEF), the UK government’s export credit agency.
Business and Trade Secretary Jonathan Reynolds said: "This is a massive vote of confidence in the Welsh economy and this government’s plans to make Britain the destination of choice for investments in the industries of tomorrow. This transformative investment will not only support local skilled jobs but raise living standards in the community."
Eren Holding is a leading containerboard and corrugated cardboard manufacturer from Turkey and ranks among the leading producers in Europe. Their plans will see Shotton Mill become the UK’s largest paper-manufacturing campus, boosting UK paper production by recycling wastepaper which would otherwise go overseas or into landfill.
The plant will produce nearly 100% recycled paper and will have an environmentally friendly production model as it purifies its own wastewater, recycles and reuses it in the system, helping to create good, highly paid jobs in the green industries of the future.
UKEF supported by issuing a guarantee which allows HSBC and UBS to arrange debt financing for the project.
The Eren investment is expected 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 5 years. This is also expected to reduce UK reliance on imports of paper.
Northeast Wales is a key industrial centre, with Deeside being one of the largest industrial parks in Europe. Shotton steelworks once operated on site, with industrial activity at the Mill dating back over 100 years.
The investment represents a new lease of life for the site and will support economic stability in Deeside and the North Wales area as both governments look to deliver long-term, sustainable, growth right across the UK. ■
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