SAICA Recycled Paper Plant, United Kingdom

Sociedad Anónima Industrias Celulosa Aragonesa (SAICA), Spain's leading corrugated packaging company, is building a state-of-the-art recycled containerboard paper mill in Manchester, UK. SAICA is investing about £290m in the new facility. About 400,000 tons of lightweight 100% recycled paper will be manufactured at the plant for use in corrugated packaging. Construction of the new plant is expected to generate 200 jobs.

SAICA announced construction of the new plant in 2008 after receiving permission for the plant from the Trafford Metropolitan Borough Council’s planning department. SLR Consulting, an independent international environmental consultancy, managed the planning application and a full environmental assessment for the new plant.

In April 2009, SAICA announced that the construction of the plant had been delayed due to global economic downturn. Due to the delay, SAICA focussed on reducing capital costs on the project, and also on bargaining with suppliers for the investment. SAICA resumed construction of the new plant in the first quarter of 2010. The paper mill is scheduled to commence operations in February 2012.

In April 2009, the company bought a 250-year lease on a disused site Partington Wharfside for constructing the new plant. The site is spread across an area of about 39 acres and is bordered by the Manchester Ship Canal and the A6144 Manchester Road, which directly links to the M60.

SAICA purchased the land from Peel Environmental, which is part of the Peel Group, a collection of property and transport companies based in Manchester, UK. The new plant is strategically located near the North West and North East suburbs from where most of the raw material for the new plant will be sourced. It is also well positioned near a motorway network for distribution of the finished products to consumers.

SAICA acquired Wiltshire-based waste management company Futur and Cutts Recycling to secure supply tonnage for the new mill.

Upon completion the new plant will be the most advanced fully integrated facility in the UK. It will use state-of-the-art technologies to ensure highest safety and environmental performance standards.

Water needed for the plant will be drawn from the adjacent Manchester Ship Canal and recycled on site using an advanced effluent treatment plant.

A dedicated combined heat and power plant will supply the energy for the plant. Surplus power generated by the plant will be supplied to the national grid.

SAICA plant equipment

The new plant will be equipped with SAICA's Paper Machine 11, a 7.5m wide paper machine. The machine is capable of operating at speeds of up to 1,500m/min. The lightweight board produced by the machine will be in the 75-125g/m² basis weight range.

Contractors

The design and engineering contract for the plant was awarded to Finland-based PÖYRY Plc in February 2010. The contract valued at $4.4m, involves the complete plant, paper mill design and stock preparation.

In January 2011, SAICA and Metso signed a multi-year agreement under which Metso will be responsible for maintenance operations of the mill, power stations, paper production facilities and the water treatment plant. Metso will also provide the containerboard production line to be installed in the plant.

Konecranes installed nine cranes and two lifting beams at the new facility in February 2011.

In April 2011, Harry Peers Steelwork was awarded a £2.5m to carry out steel works at the plant. Harry Peers is also responsible for design, fabrication and erection of the production buildings and supply of pipe supports and other plant support and frames.

Financing

In January 2011, SAICA secured a €250m loan from the European Investment Bank (EIB). SAICA will use part of this loan for construction of the new facility.

Benefits

The new plant is being constructed at a time when processing capacity in the UK needs a boost. The amount of recovered paper is increasing steadily but the capacity to process it has been limited due to global recession.

Construction of the new plant will increase the recycling capacity in the UK and also reduce 450,000t/y of used paper that is exported from the UK for recycling.

The quantity of container board imported from the EU is also expected to decrease. As a result, the overall carbon dioxide (CO2) emissions associated with exports and imports will decrease.

In addition, the combined heat and power plant and the effluent treatment plant installed at the new mill will help in reducing the environmental footprint of the UK paper industry.

The project received extensive public support and was also endorsed by local politicians.

The new plant has triggered other investments in the region. The North West Development Agency (NWDA) will help in improving the A6144 Manchester Road. NWDA will provide financial support to the Trafford Metropolitan Borough Council to upgrade the Manchester Road/Flixton Road junction on the A6144. The modifications are expected to ease traffic flow on the route.