North Wales: Major redevelopment at Shotton Mill in Deeside

The investment of Shotton Mill in Deeside, will safeguard 147 jobs and create a further 220 when fully commissioned.

Cabinet ministers from both the UK and Welsh government will visit the historic industrial centre of Wales to meet with members of Eren Holdings, who acquired Shotton Mill in 2021.

The site's transformation will turn the area into the UK's largest paper manufacturing site.

Shotton Mill redevelopment underway in Deeside.

The announcement comes ahead of the Investment Summit next month which will make clear the UK is "open for business" as the UK government resets relations with trading partners around the globe and creates a pro-business environment that supports innovation and high-quality jobs at home and will play a key role to maintain the highest sustained growth in the G7.

The Welsh Government has provided almost £13m in funding alongside £136m in support from UK Export Finance (UKEF), the UK government's export credit agency.

Business and Trade Secretary 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."

Shotton Mill redevelopment underway in Deeside.

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."

Welsh Government Economy, Energy and Planning Cabinet Secretary Rebecca Evans 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 £13m 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."

Shotton Mill redevelopment underway in Deeside.

Eren Holding is a leading containerboard and corrugated cardboard manufacturer from Turkey and ranks among the leading producers in Europe. Their plans will see Shotton Mill become the UK's largest paper-manufacturing campus, boosting UK paper production by recycling wastepaper which would otherwise go overseas or into landfill.

The plant will produce nearly 100% recycled paper and will have an environmentally friendly production model as it purifies its own wastewater, recycles and reuses it in the system, helping to create good, highly paid jobs in the green industries of the future.

UKEF supported by issuing a guarantee which allows HSBC and Credit Suisse to arrange debt financing for the project.

Shotton Mill redevelopment underway in Deeside.

The Eren investment is expected to boost Welsh and UK exports in paper, with UKEF support offered on the understanding that Shotton Mill will export 10% of its turnover within 5 years. This is also expected to reduce UK reliance on imports of paper.

Hamdullah Eren, senior board member of the Eren Holding group, said: "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.

"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."

Shotton Mill redevelopment underway in Deeside.

North East Wales is a key industrial centre, with Deeside being one of the largest industrial parks in Europe. Shotton steelworks once operated on site, with industrial activity at the Mill dating back more than 100 years.

The investment represents a new lease of life for the site and will support economic stability in Deeside and the North Wales area as both governments look to deliver long-term, sustainable, growth right across the UK.

The announcement also falls on National Manufacturing Day as the government celebrates the nation's first-class manufacturing industry. The UK government's upcoming modern industrial strategy will back workers and give international investors the confidence they need to invest in Britain, creating jobs and growth across the UK.

The UK remains an attractive destination for green investment and this announcement will help create jobs, grow the economy and export high-quality, sustainable goods around the world.