26 Sept. 2024: Eren is transforming the Shotton site to containerboard and tissue production. Eren is transforming the Shotton site to containerboard and tissue production.

Turkish industry conglomerate Eren Holding has officially launched its £1bn Shotton Mill paper site at a business reception attended by senior UK and Welch Government Ministers.

The company is currently redeveloping the 85.6-ha site to accommodate a containerboard machine (PM 3) and a tissue paper machine (TM 1). The new mill will be the most advanced of its kind in Europe and it will be one of the largest in the UK.

In 2021, Eren expanded its international footprint with the acquisition of UPM's Shotton graphic paper production plant in North Wales, which was a significant step forward in its ambition for global growth. PM 3 will be the largest single paper machine in Britain with the capacity of 750,000 tpy of containerboard from 100 per cent recovered paper.

Planning permission has also been granted for a new tissue machine and a corrugating facility. The current investment phase is focused on the first tissue machine (TM 1), which will have a capacity of 67,000 tpy of tissue paper.

In addition, the site will comprise facilities for fibre storage, anaerobic digestion effluent treatment, a hydrogen-enabled combined heat and power (CHP) plant, warehouses, and administrative offices. Existing structures, including the materials recycling facility and the biomass plant, will be retained.

The project will be developed in several phases, starting with containerboard manufacturing, followed by phase one of the tissue production operations.
Eren's Shotton side will house the UK's biggest single paper machine. Eren's Shotton side will house the UK's biggest single paper machine.

UK: From net import to net export of containerboard

The opening of the new containerboard machine plant, scheduled for 2025 according to information provided earlier, will represent a significant transformation for both the UK corrugated and paper recycling industries.

At present, more than 50 per cent of the recovered paper collected in Britain (2023: 4 million t) is being exported. Abroad, the recovered paper is converted to containerboard or corrugated sheets and then re-imported into the UK. In 2023, the UK imported roughly 730,000 t of recycled fluting and testliner.

Thanks to the new machine, the UK will become a net exporter of containerboard, while exports of recovered paper will decrease by one quarter, according to Eren.

Financial backing from the UK and Welsh governments

The Shotton Mill project has received significant financial backing from the UK Government through UK Export Finance (UKEF), which has agreed to underwrite a £136m Export Development Guarantee (EDG).

Additionally, the Welsh Government has allocated almost £13m in funding to ensure the continued employment of workers and facilitate the manufacture of containerboard utilising recycled materials sourced domestically.

Hamdullah Eren, Board Member of Eren Holding, said: "This is the first step towards building a world-class facility that will completely transform recycling levels in the UK. We cannot wait to start production and to turn our vision into reality. We are extremely pleased to have the support of both the UK and Welsh Governments. This has allowed us to move forward with a major overseas investment as we realise our exciting plans for Shotton Mill."

Sabri Cimen, CEO, added: "Eren Holding, as an industrial group, always uses the principle of investing in the best available technology and always works with experts and established companies. This investment will build on the rich heritage of manufacturing on Deeside, and it will bring together people, community, advanced technology and investment. We are extremely proud to be a part of the renaissance of North Wales."

Eren Holding was established in 1969 as a family-owned conglomerate with operations spanning multiple sectors, including energy production, port operations, paper manufacturing, packaging, recycling, cement, textiles, and retail. Currently, the company employs over 14,000 staff and is the largest manufacturer of paper and corrugated board in Turkey.