Business Secretary Lord Peter Mandelson has welcomed the announcement that Spanish paper and packaging group SAICA has chosen to invest £290m to build a recycled paper mill in Trafford.
The firm plans to begin construction of the paper mill in the coming months, which is expected to create up to 200 jobs.
In a statement released today, Lord Mandelson said: "Both the scale and the nature of this investment make it a great win for both the North West and the UK, the number one destination for inward investment in Europe.
"This shows great confidence in our economic future and has all the right ingredients. It is a long-term commitment in environmental technology which will be central to the UK's growth strategy. I congratulate the company and wish them every success."
UK Trade & Investment, the government's international business development agency, worked closely with the North West Development Agency and Trafford Council to help SAICA with all stages of the investment process.
This investment brings SAICA's committed and planned investment in the UK to over £470m since 2007, when the company acquired International Paper's Packaging business in the UK and Ireland.
Sir Andrew Cahn, chief executive of UK Trade & Investment, met with the Spanish investors during a trip to Madrid in December. He said: "This investment is great news for both the UK and the North West. By choosing to build Europe's most advanced paper mill in Britain, SAICA recognises that the UK is the best place to establish a European operation. This shows sustainable business is a strong part of the British economy."
Steven Broomhead, chief executive of the NWDA, added: "We have been working with and supporting SAICA for over two years and today I am delighted that this work has resulted in a major investment in Trafford.
"It is a great start to 2010 with one of the world's most advanced recycled paper mills being built here in the North West, creating over 200 jobs. The NWDA along with our partners have helped to bring this investment to the region and the Agency is in the final stages of supporting this investment with funding for SAICA towards land remediation. We will continue to work with the company as they commence construction in the coming months."
The recycled paper mill is planned to be built at Partington Wharfside in Trafford and is expected to be complete in February 2012.
Around 400,000 tonnes a year of 100% recycled paper will be produced at the Partington Mill.