Next chapter for Eren’s £1bn Shotton Mill

UK Export Finance has agreed to underwrite £136m of debt financing for the Turkish company’s revitalisation of the North Wales paper mill, enabling the facility to open next year.

Eren Holdings purchased the 210-acre Shotton Mill site at Deeside Industrial Park in 2021 and has spent the past few years working with architect AHR and consultant Arup on crafting its future. With support from national and Welsh governments, the company is building a largescale cardboard paper manufacturing facility and another centre for tissue paper manufacturing.

This will safeguard 147 jobs in Flintshire and create 220, according to the government. The project represents a £1bn investment into North Wales, it continued. The Welsh government contributed £13m to the scheme.

“This is the first step towards building a world-class facility that will completely transform recycling levels in the UK,” said Eren Holding board member Hamdullah Eren.

“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.”

The plant itself will be largely self-sufficient, with technology in place to purify, recycle, and reuse its own wastewater. An on-site combined heat and power plant will take the waste heat produced by the production facilities and turn it into electricity.

When the facility opens, its cardboard paper manufacturing facility will be able to produce 750,000 tonnes of containerboard a year using 100% recycled paper. The tissue machine will have the capacity to manufacture 67,000 tonnes of paper a year.

Eren chief executive Sabri Cimen 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.”

Jonathan Reynolds, secretary of state for business and trade, described Eren’s Shotton Mill plans as “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”.

He continued: “This transformative investment will not only support local skilled jobs but raise living standards in the community.”

Secretary of state for Wales Jo Stevens added: “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.”

Being able to produce cardboard and tissue paper at this scale will enable the UK to be an exporter in this field – rather than having to import the material, as it does at present. Currently, the UK ships paper waste to other countries for reprocessing, only for the recycled packaging to return.

By being able to process the material in the UK, there will be a reduction in carbon emissions equivalent to the emissions from 190,000 homes a year, according to Welsh cabinet secretary for economy, energy, and planning Rebecca Evans.

“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,” Evans continued.