A transformative £1bn investment in the Shotton Mill on Deeside is set to make it the UK’s largest manufacturer of recycled paper. The project is spearheaded by Turkish owners Eren Holdings and promises to bring extensive economic benefits to North Wales.
This significant development will introduce Europe’s most advanced paper manufacturing technology to the UK. Contributing to both local job creation and the nation’s green energy goals, the investment has been hailed as a major step forward for the region.
Massive Investment and Job Creation
A £1bn investment will transform Shotton Mill into the UK’s largest recycled paper manufacturer. This venture is led by Turkish company Eren Holdings, which acquired the site in 2021. The redevelopment will safeguard 147 existing jobs and create 220 new ones.
Eren Holdings aims to establish itself as a leader in the paper manufacturing industry. The firm is introducing Britain’s largest single paper machine, capable of producing 750,000 tonnes of cardboard annually from 100% recycled paper. A second production line will manufacture 67,000 tonnes of tissue paper each year.
Government Support and Green Innovations
The project has received robust support from both the UK and Welsh Governments. Nearly £13m in funding has come from the Welsh Government, supplemented by £136m from UK Export Finance (UKEF). These contributions underline the importance of the initiative in advancing the UK’s green energy and job creation targets.
Rebecca Evans, Economy, Energy and Planning Secretary, stated that the investment is excellent news for Deeside and the broader Welsh economy. She emphasized the project’s alignment with sustainable job creation and waste reduction, highlighting its role in fostering a green economy.
Transforming the UK’s Recycling and Export Landscape
When fully operational, Shotton Mill will transform the UK from a net importer to a net exporter of cardboard. Presently, the UK exports waste cardboard for overseas recycling before reimporting it for sale. The new facility aims to reduce this export volume by a quarter.
Once operational, the initiative will enable the UK to process waste domestically, turning it into recycled packaging. This development is expected to reduce carbon emissions equivalent to those from 190,000 homes annually. Flintshire Council’s approval of an 82ha site expansion underscores the project’s significant local impact.
Technological and Environmental Advancements
One key objective of the new paper mill is energy self-sufficiency. A hydrogen-enabled combined heat and power (CHP) plant will utilise waste heat to generate low-carbon energy, aiming for a net-zero carbon footprint.
In addition, a new anaerobic digestion plant will treat effluent and waste, contributing to the facility’s green energy goals. Other enhancements include new fibre storage facilities, warehouses, and offices. Existing facilities such as a materials recycling plant and biomass plant will be maintained.
Eren Holdings: A Global Perspective
Founded in 1969, Eren Holding is a family-owned conglomerate with diverse operations spanning energy, ports, paper, packaging, cement, textiles, and retail. In 2022, Eren generated 5% of Turkey’s electricity through its various enterprises.
With 27 companies operating in Turkey and 36 internationally, Eren employs more than 14,000 people worldwide. Senior board member Hamdullah Eren announced that state-of-the-art technology would make Shotton Mill Europe’s most advanced paper manufacturing site, enhancing UK recycling capabilities significantly.
Strategic Choice of Location
Deeside was selected by Eren Holdings for this major investment due to its rich manufacturing heritage and strategic industrial location. Historically, Shotton steelworks have operated for over 80 years, and the area hosts one of Europe’s largest industrial parks.
Eren Holdings aims to rejuvenate this industrial legacy with its innovative recycling processes. CEO Sabri Cimen expressed pride in contributing to the renaissance of North Wales through this landmark project.
Governmental and Industrial Response
Wales Secretary Jo Stevens highlighted Deeside’s status as a key industrial hub in Wales. The investment has been acknowledged as pivotal in securing jobs and fostering regional prosperity.
UK Business and Trade Secretary Jonathan Reynolds underscored the importance of the development. He stated, ‘This transformative investment will support local skilled jobs and raise living standards in the community.’ This project exemplifies the UK’s pro-business environment and commitment to future industries.
Future Prospects
The investment coincides with the UK’s National Manufacturing Day and precedes an Investment Summit aimed at showcasing the UK as an attractive business destination. The redevelopment of Shotton Mill represents a significant step in resetting the UK’s trade relations worldwide.
All stakeholders look forward to the project’s full operational capacity, anticipating it will serve as a beacon for future industrial investments in the UK.
The £1bn redevelopment of Shotton Mill by Eren Holdings marks a transformative chapter for North Wales. This project not only promises substantial economic and environmental benefits but also positions the UK as a leader in green industry innovations.
With robust support from both governmental levels and advanced technological implementations, the initiative sets a benchmark for future foreign investments. The local community and broader region stand to gain significantly, underscoring the far-reaching impact of this ambitious redevelopment.
