UK and Welsh governments announce £1bn investment in Shotton Mill

The UK and Welsh governments have announced a £1bn investment in the redevelopment of Shotton Mill in north Wales.

The announcement on Thursday (September 26) will see 147 jobs safeguarded as well as creating a further 220 jobs when the paper manufacturing site is fully commissioned.

It’s hoped the new facility in Deeside will reduce the UK’s reliance on importing tissue products from the EU.

Cabinet ministers from both governments will visit the historic industrial centre of Wales to meet with members of Eren Holdings, who acquired Shotton Mill in 2021.

Wastepaper

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.

The Welsh Government has provided almost £13 million in funding alongside £136 million in support from UK Export Finance (UKEF), the UK Government’s export credit agency.

Skiled jobs

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.

“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.”

Secretary of State for Wales Jo Stevens 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.

“We have reset the relationship between the UK and Welsh Government. Working together in close partnership we are delivering growth and good jobs to people across Wales.”

Overseas

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.

The Welsh Government says this will lead to a net reduction in carbon emissions equivalent to emissions from 190,000 homes a year.

Welsh Government Economy, Energy and Planning Cabinet Secretary Rebecca Evans 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.

“Our £13million support will help ensure this is delivered whilst safeguarding and creating local jobs and ensuring that the community is at the heart of the business’ success for many years to come.”

UKEF supported by issuing a guarantee which allows HSBC and Credit Suisse 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.

Hamdullah Eren, Senior board member of the Eren Holding group, said: “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.”

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.