UK to absorb 1.45 million tonnes of recovered paper with new 2027 capacity

The British paper industry is undergoing a tectonic shift that will permanently alter the flow of raw materials across Europe. For decades, the UK has operated as a net exporter of recovered paper and cardboard (RCP), shipping millions of tonnes of valuable secondary fiber to Asia and mainland Europe due to a historical lack of domestic reprocessing infrastructure. However, the industrial landscape of 2026 shows a definitive and aggressive pivot. By the first quarter of 2027, the UK is set to add nearly 1.47 million tonnes of new corrugated case material (CCM) and containerboard capacity, fundamentally tightening the regional recovered fiber market.

Palm Group pivots from newsprint to lightweight packaging

At the heart of this transformation is Palm Group’s strategic conversion of its King’s Lynn mill in Norfolk. The facility currently houses PM 7, historically recognized as the world’s widest newsprint machine at 10.6 meters. In a direct response to the structural collapse of the Western European newsprint market—which has contracted by a staggering 60% over the last decade—Palm is executing a massive rebuild in partnership with Voith. Scheduled for completion in March 2027, the upgraded machine will cease newsprint operations and transition entirely to producing lightweight corrugated case material.

The technical specifications of the King's Lynn conversion highlight a clear alignment with current packaging trends. The machine will churn out 700,000 tonnes annually, utilizing a 100% recycled paper furnish to produce CCM with basis weights starting at a highly competitive 60 g/m². This focus on lightweighting is crucial for corrugated converters looking to reduce material costs and improve the sustainability metrics of e-commerce packaging. Meanwhile, Palm is not abandoning its publishing clients; the company has smartly consolidated its newsprint operations at its Eltmann mill in Germany following a recent €100 million investment, ensuring supply chain stability for that sector.

Eren Holding's £1 billion mega-project in North Wales

Simultaneously, Eren Holding is finalizing its monumental £1 billion transformation of the Shotton Mill in Flintshire. When fully operational next year, this greenfield-scale facility will inject another 750,000 tonnes of containerboard capacity into the market, alongside 67,000 tonnes of tissue paper. The Shotton site is designed as a model of modern circularity, relying entirely on 100% recycled materials and utilizing waste wood and biomass for green energy generation.

The sheer scale of the Shotton project cannot be overstated. Eren Holding has explicitly projected that the new plant will process roughly a quarter of the waste cardboard the UK currently sends abroad. When combined with Palm’s 700,000 tonnes and the upcoming capacity from the Essity Prudhoe mill—which will also act as an off-taker for domestic cardboard by 2027—the math becomes undeniable. The UK is building a formidable domestic circular economy.

Market implications for the corrugated sector

This 1.45 million-tonne capacity surge will aggressively tighten the local RCP market. British waste management firms will soon find eager, high-volume domestic buyers, drastically reducing the carbon footprint and logistical vulnerabilities associated with exporting bales overseas. For corrugated packaging converters across the UK, this translates into a more localized, secure, and responsive supply chain of high-quality recycled liners and fluting.

The simultaneous execution of the Palm and Eren projects represents the most pragmatic industrial realignment the UK paper sector has seen in a generation, turning a historical export dependency into a robust domestic manufacturing advantage. Will the European mainland face a sudden deficit of British recovered fiber once these mega-mills fire up their pulpers in 2027? Follow The Paper for daily news, market signals and key updates from the global paper, corrugated and packaging industry. — Sigue toda la actualidad del sector en www.thepaper.ai