CPI urges government to back investment in paper sector

Recovered paper sector manager Peter Seggie urged the government to undertake work to fully understand the market situation so that when the general economic situation improves the UK is seen as an attractive place to invest.

“There are companies willing to invest in the UK, but there’s a big discrepancy between consumption and capacity. We really need to understand the opportunities for and barriers to greater investment in the UK,” he told Packaging News.

He added there was also the issue of dependence of overseas markets for recovered paper that left the country at the mercy of price fluctuations, such as those experienced last year.

The CPI’s preliminary research revealed the UK produced just under five million tonnes of paper and board in 2008, down 5% on 2007.

Four mills closed last year and there are three consultations about further closures. The seven plants represent 675,000 tonnes of capacity, the CPI said.

UK exports of recovered paper and board are predicted in the region of 4.7m tonnes.

Seggie said: “2008 was a very demanding year for the sector, but we hope the planned capacity coming on line in 2009-2010 will reverse the decline and secure a better outlook for the industry.”

The UK is, nonetheless, one of the smallest European producers of paper and board relative to its consumption.

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