Turkish holding invests $1.3B in Wales to build UK’s largest paper mill
Shotton Mill paper production facility is under construction. (via Wales Government)
Turkish conglomerate Eren Holding has announced a $1.3 billion investment in Wales’ Shotton Mill paper production facility, with the goal of transforming it into the largest paper mill in the United Kingdom.
The investment, supported by both the Welsh Government and U.K. Export Finance (UKEF), is expected to create 147 jobs initially and offer employment to an additional 220 people when the plant reaches full capacity.
Support from Welsh government and UK Export Finance
Eren Holding’s acquisition of Shotton Mill in 2021 laid the groundwork for this major investment. The project has received $17.3 million in funding from the Welsh government and an additional $181.7 million in support from UKEF.
UKEF’s backing includes a guarantee that has enabled HSBC and Credit Suisse to arrange debt financing for the project.
Shotton Mill’s expansion is expected to boost U.K. paper exports, with UKEF’s financial support contingent on the mill exporting 10% of its turnover within five years.
Job creation and environmental focus
The investment will result in 147 new jobs, with full operational capacity creating 220 more positions. Eren Holding aims to make the plant environmentally sustainable, with plans to recycle waste paper and purify its wastewater for reuse.
Hamdullah Eren, a board member of Eren Holding, commented, “We believe this new plant will bring prosperity, leadership in our industry, and long-term employment prospects that will be the pride of Deeside, Wales and Türkiye”
Production at our new plant at Shotton Mill will be based on state-of-the-art technology, making this the most advanced paper campus in Europe. Our custom-built plant will deliver sophisticated and sustainable manufacturing solutions well into the 21st century.
“This is the first major Eren Holding cap ex project outside Türkiye and we are delighted to have chosen Deeside as an ideal location to meet our ambitions for growth. We are putting down deep roots on a site of historic industrial significance.
Hamdullah Eren, senior board member of the Eren Holding group
Welsh and UK government reactions
Welsh Economy Minister Rebecca Evans echoed these sentiments, emphasizing the project’s role in creating a sustainable economic future for the region. She said, “Our $17.3 million 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,”
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.
Welsh Government Economy, Energy and Planning Cabinet Secretary Rebecca Evans
U.K. Business and Trade Secretary Jonathan Reynolds also praised the investment, highlighting its positive impact on local employment and living standards by saying, “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.
Business and Trade Secretary Jonathan Reynolds
Secretary of State for Wales Jo Stevens also made comments about the project and 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.”
She added, “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.”
