From underwear to power stations the Turkish conglomerate planning to create hundreds of jobs at Shotton Paper Mill

A Turkish conglomerate that began life as an underwear manufacturer and has since expanded into owning power stations, shipping ports and has multiple other business interests will take over Shotton Paper Mill on Friday.

Eren Holdings agreed to acquire the paper mill in May from Finnish firm UPM who said today it has now permanently closed paper production at its Shotton newsprint site.

The site and all related assets will now be transferred to Eren Paper Ltd, a subsidiary of Modern Karton, the containerboard and corrugated packaging business owned by Eren Holding.

UPM Shotton was founded in 1983 and at its height employed around 530 people, the decline in newspaper circulation has impacted on demand for newsprint which has pushed the Finnish firm to sell the site.

The paper mill currently employs 183 people directly and an additional 231 in the site’s Material Recovery and the Recycling Facility and other service operations.

Eren will now begin work pivoting the site from newsprint to tissue and cardboard.

The Renewable Energy Generation plant, the Material Recovery and the Recycling Facility (MRRF) will continue operations throughout the conversion process.

Winfried Schaur, Executive Vice President UPM Communication Papers said, “The closing of the newsprint paper production at UPM Shotton ends a very successful chapter of UPM Communication Papers’ history in the United Kingdom. ”

“I want to thank our colleagues at the site for their committed and professional work over the past decades.”

“The strong support by the local authorities has been critical for the success of Shotton as was the loyalty of our customers.”

“I am therefore very happy that the upcoming transformation of the mill will provide a very positive long-term perspective for the people at Shotton and for the region as such.”

“The transparent and reliable collaboration with Eren over the past months is a very solid foundation for this future development.”

“It is important to highlight, that UPM Communication Papers will remain firmly rooted as a paper supplier in the United Kingdom going forward.” Schaur said.

End of an era, newsprint will no longer be produced at Shotton Paper Mill. Photo UPM

Eren wants to expand the Shotton with a tissue manufacturing area and a combined heat and power facility.

The Turkish firm submitted a request to Flintshire council for scoping opinion earlier this month.

Before submitting a planning application, applicants can apply for an opinion on whether a development should be subject to environmental impact assessment.

Proposals outlined in a report submitted to the council includes demolishing several existing buildings on the main 148-acre site and building new ones for cardboard paper manufacturing.

The company wants to expand operations to a 55-acre neighbouring site where it would build its tissue manufacturing buildings, detailed plans are expected to be lodged in December.

Eren controls businesses across several sectors, including energy, paper, cement, retail, ports, packaging, textile, and tourism.

Its chairman and CEO is Ahmet Eren and the group employs around 8,500 employees.

Eren was established by four brothers from Bitlis in eastern Turkey in 1969 when Er-os Çamaşırları underwear manufacturer and trademark was established.

The group made its first investment in paper sector in 1978 when it bought a site near the city of Tekirdağ in eastern Turkey.

In 1998, Eren entered the energy sector and now owns three power stations and a biomass plant in Turkey.

The company also owns the largest cement factory in Turkey and two shipping ports