3 minute read - 26th September 2024
£1bn invested in redevelopment of Shotton Mill in Deeside
A major investment of over £1bn 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.
Eren Holding, who acquired Shotton Mill in 2021, is a containerboard and corrugated cardboard manufacturer from Turkey and ranks among the leading producers in Europe. Its plans will see Shotton Mill become the UK’s largest paper manufacturing site, 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.
Over £1bn is being invested in the redevelopment of Shotton Mill in Deeside by containerboard and corrugated cardboard manufacturer Eren Holding / Picture: Eren Holding
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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.
Hamdullah Eren, senior board member of 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.”
The investment will see the plant become the UK’s largest paper manufacturing campus / Picture: Eren Holding
Jonathan Reynolds, business and trade secretary 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. The deal being announced today is testament to what can be achieved when the Welsh and UK governments work hand in hand. We’re also proud to celebrate National Manufacturing Day, where we recognise the tremendous innovations taking place right across the sector, not least here in Shotton Mill.”
The Welsh government has provided almost £13m in funding for the redevelopment, alongside £136m in support from UK Export Finance (UKEF), the UK government’s export credit agency. UKEF supported by issuing a guarantee which allows HSBC and Credit Suisse to arrange debt financing for the project.
The redevelopment programme will safeguard 147 jobs and create a further 220 when fully commissioned / Picture: Eren Holding
Rebecca Evans, Welsh government cabinet secretary for economy, energy and planning said: “This is excellent news for Deeside and the wider Welsh economy and is a prime example of how, through our commitment to a prosperous, green economy we are able to attract investment, and create good, sustainable jobs whilst reducing waste. 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.”
Shotton steelworks once operated on the 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.
