Business & Finance

Metsä Tissue abandons Goole paper mill plans that promised 450 jobs at Humber Freeport

Plans for what would have been the UK’s largest paper mill site in Goole have been abandoned by Finnish firm Metsä Tissue, scuppering hopes for hundreds of new jobs

A CGI of Metsä's facility in Goole

A CGI of Metsä’s facility in Goole.(Image: Metsä)

A CGI of Metsä's facility in Goole

A CGI of Metsä’s facility in Goole.(Image: Metsä)

Plans for what would have been the UK’s largest paper mill site in Goole have been scrapped, dashing hopes for hundreds of new jobs. Finnish firm Metsä Tissue obtained approval for the multimillion-pound factory site at Humber Freeport last year, with significant job creation potential promised.

However, bosses have opted to abandon the plans following financial evaluations. Developer Wykeland has expressed its disappointment at the decision, which follows several years of consultation.

The 211-acre site, south east of North Airmyn Grange, had been designated for a three-million square foot facility capable of producing approximately 240,000 tonnes of tissue paper annually. That could have significantly reduced the country’s reliance on imports, accounting for roughly a fifth of the UK’s production.

Planning documents had outlined how the construction phase would have generated or sustained around 338 jobs over a 10-year build period, providing a boost to regional construction, the supply chain and local services. Between 16 and 34 training and apprenticeship opportunities were anticipated each year.

Hull-based Wykeland Group holds the long-term development rights for the site. Its managing director, Dominic Gibbons, said: “We’re disappointed that Metsä Tissue has decided not to proceed with this development following the substantial amount of work, over the past three years, by ourselves and other stakeholders to deliver a detailed planning consent in early September. However, the site now has full planning consent for 3m sqft of manufacturing and high-bay warehousing space, and benefits from attractive Freeport financial incentives, so it offers a very appealing investment proposition.”, reports Hull Live.

“We had put plans in motion in anticipation of Metsä’s decision and we’re now talking to prospective alternative end users who are interested in realising the potential of this key site.”

Figures suggest the project would have injected £217m into the local economy during its construction phase, with an average of £3.67m in business rates anticipated to be generated annually – all of which would have been retained locally for 25 years under the Freeport’s tax site designation. An annual gross value added of £26.5m to the region was also projected.

Metsä has been contacted for comment.

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