Finnish firm Metsä Tissue has abandoned plans for what would have been the UK's largest paper mill site in Goole, ending hopes for hundreds of new jobs. The company had obtained approval for the multimillion-pound factory at Humber Freeport last year, with significant job creation potential promised.
Bosses have opted to scrap the project following financial evaluations, a decision that developer Wykeland has said it is disappointed by after several years of consultation.
Site had full planning consent
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.
Wykeland responds to decision
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."
Gibbons added: "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."
Economic impact figures
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.
