£1bn Investment in Shotton Mill to Create Europe’s Most Advanced Paper-Making Campus

A family-owned Turkish conglomerate has officially launched its £1 billion Shotton Mill paper campus.

It is the first major investment overseas by Eren Holding, which is Turkey’s largest manufacturer of paper and corrugated cardboard and has operations across sectors including energy production, port operations, paper manufacturing as well as packaging, cement, textiles, and retail. Eren employs more than 14,000 people globally.

It acquired the Shotton plant in North Wales in 2021 and says its investment will build and develop the UK and Europe’s most advanced paper-making campus.

Currently, Britain exports waste cardboard which is recycled overseas and is imported back for sale in the UK. However, when fully operational, the state-of-the-art containerboard plant will transform the UK from a net importer to a net exporter and further improve recycling by handling a quarter of the waste cardboard that is currently sent abroad.

The plant will be energy self-sufficient and a key aspect of the project is the development of a hydrogen enabled combined heat and power (CHP) plant. This will generate efficient, low-carbon energy to power the mill’s operations, achieving one of the company’s key sustainability targets.

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

Additionally, the Welsh Government has provided almost £13 million in funding to help safeguard jobs and support the production of containerboard using recycled materials sourced within the UK.

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.”

The 85.6-hectare Shotton Paper Mill site is set for a major redevelopment to accommodate two advanced manufacturing operations: a cardboard paper machine (PM3) and a tissue paper machine (TM1).

PM3 will be the UK’s largest single paper machine, with the capacity to produce 750,000 tonnes of container board annually. This state-of-the-art machine will incorporate modern production technologies, including approach flow systems, a wire section, and a roll handling system. In addition to the production line, the site will feature facilities for fibre storage, anaerobic digestion-based effluent treatment, hydrogen-enabled combined heat and power (CHP), warehouses, and administrative offices. Existing structures, such as the materials recycling facility and biomass plant, will be retained.

Planning permission has also been secured to expand the capacity of tissue production and corrugating converting facility. The current phase of investment is focused on the first tissue machine (TM1), which has a capacity of 67,000 tonnes pa of tissue paper.

The UK Government was represented at the launch by Secretary of State for Business and Trade Jonathan Reynolds MP and the Secretary of State for Wales Jo Stevens MP.

The Welsh Government was represented by Rebecca Evans MS, Cabinet Secretary for the Economy, Energy and Planning, and Ken Skates MS, Cabinet Secretary for Transport and North Wales.

CEO Sabri Cimen said:

“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 said:

“This is 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. This transformative investment will not only support local skilled jobs but raise living standards in the community.

“The deal being announced today is testament to what can be achieved when the Welsh and UK Governments work hand in hand.   We’re also proud to celebrate National Manufacturing Day, where we recognise the tremendous innovations taking place right across the sector, not least here in Shotton Mill.”

Secretary of State for Wales Jo Stevens said:

“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.”

Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said:

“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.

“Once fully operational, instead of transporting paper waste many hundreds or thousands of miles overseas to be processed it will be turned into recycled packaging here in Wales. This, alongside the nature of the technology, means a net reduction in carbon emissions equivalent to emissions from 190,000 homes a year.

“Our £12 million of support will help ensure this is delivered whilst safeguarding and creating local jobs and ensuring that the community is at the heart of the business’ success for many years to come.”