It reported that in 2007, the UK produced just over 5.2 million tonnes of paper and board, a 6.4% reduction on the 2006 total.
In terms of raw material input, UK paper and board mills used just under 4.1 million tonnes of recovered paper, a decline of 3.0% against 2006 usage.
The industry federation also noted that two paper mills closed in the UK in 2007, representing around 250,000 tonnes of capacity.
Profitability
Profitability was quoted by the CPI as a key factor in the decisions to cease production, caused by “difficult trading conditions” and a lack of confidence in investment returns at each of the sites.
The further decline in domestic usage of recovered paper means that exports for 2007 are likely to be around the 4.6 million tonne mark, the CPI suggested, with over 75% of this material destined for the Far East.
It explained: “The full impact of the 2007 closures has yet to be fully reflected in the yearly production totals. However, with no closures in 2008 and new capacity planned, it is expected that in 2008 around 5.3 million tonnes will be produced with domestic usage of recovered paper falling to around the 4 million tonne mark.”
Commenting on the figures, Dr Martin Oldman, director general of the CPI, said: “2007 was a slightly better year for the paper industry. However, the two closures are a reflection of the difficult times the UK industry is still having in securing profitability. We hope that planned new capacity in 2008 and 2009 will reverse the trend of closures and secure a better outlook for the future.”
Dr Oldman added: “In the UK, great strides continue to be made in increasing the tonnage of recovered paper being retrieved from the waste stream, and currently there is a very buoyant global market for this material. However, it is vital that the UK retains a strong paper manufacturing industry to ensure that there is a reliable internal market for recovered paper should there be any decline in the global demand for this valuable raw material.”
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