Shotton paper mill sold to Turkish conglomerate Eren Holding
UPM is to sell its Shotton paper mill site to Turkish industrial conglomerate Eren Holding.
Eren’s plan is to integrate the Shotton site into its existing business units and invest in the site.
UPM has said, “all 190 employees currently working at UPM Shotton will be part of the transaction.”
Newsprint production is planned to stop by 30 September 2021 and Eren will take over responsibility for the mill as of 1st October 2021.
Good to see this commitment from Eren Paper Ltd which secures the future of the Shotton site.
I will be working with @UniteWales colleagues and the sector to maximise the potential opportunities for the area. https://t.co/tGLOciCfBK
— Jack Sargeant MS (@JackSargeantAM) May 14, 2021
In a statement UPM said: “While the concrete timeline for the conversion plans will be communicated by Eren, it is already known that the Renewable Energy Generation plant and Material Recovery and Recycling Facility (MRRF) will continue operations throughout the conversion process, corresponding to their role in the regional utility infrastructure.”
Winfried Schaur, Executive Vice President of UPM Communication Papers, said:
“We are very pleased with this agreement. It will provide a long-term future for the employees at our Shotton paper mill and continued use of the site infrastructure.”
“It will help UPM to further consolidate its newsprint production capacity while leveraging the value of the site and its assets.”
This sale will also support Eren in expanding its business in the UK market.”
Mr Schaur added: “The negotiations with Eren have been transparent and fair throughout and we have agreed close collaboration over the coming months to support the transition with both internal and external stakeholders.”
UPM plans to continue serving UK newsprint customers also after the sale and will continue sourcing recovered paper in the UK.
“UPM and Eren have agreed to co-operate closely during the transition period to ensure a smooth transfer of the operations.”
“The transaction will reduce UPM’s annual newsprint capacity by 250,000 tonnes and fixed costs by EUR 30 million upon closing of the sale. ” UPM said.
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