Need for Ecco's recycled newspaper mill 'stronger than ever'

The case for building a recycled newsprint paper mill on Teesside is "stronger than ever", despite the recession and reduced demand for products, Ecco Newsprint has said.

The mill in the Tees Valley, which had been scheduled to be in operation by 2009, will produce more than 400,000 tonnes of newsprint per annum when up and running, using recovered waste as raw materials.

Ecco has already been granted planning consent by Redcar and Cleveland Borough Council permitting construction to start, however the project is subject to financing building and operating costs.

Chief executive Marcus Moir said UK selling prices in 2008 have been the lowest in the world, and that a "substantial" selling price increase is predicted for 2009.

He said: "In addition, UK newspaper publishers have the highest consumption of newsprint in Europe, yet rely heavily on imported newsprint.

"When the recession is over, they will likely face further substantial increases in cost for imported newsprint, because there is insufficient local production of good quality newsprint on which they can rely."

Despite the closure of several high production cost newsprint facilities around the world, Moir said that Ecco and its customers, suppliers and funders, remain convinced of the compelling case for the site.

He added: "Substantial reductions in construction costs now seem likely, and represent the final phase of development work necessary to conclude Ecco's ongoing financial programme."

Plans for the mill will see more than half a million tonnes of recovered waste paper being diverted from landfill each year – in line with UK government and EU strategies to remove used newspapers and magazines from landfill.

Earlier this year, the company said that falls in the value of the pound against the euro combined with the economic recession had hit building costs.

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