CPI alerts MPs, High energy costs deeply damage UK Papermakers
In its latest briefing to MPs, the Confederation of Paper Industries (CPI) underlines the damaging effect that high energy and carbon costs are having on the competiveness of the UK’s Papermakers.
"Whilst the plight of the UK’s Steel Industry has received widespread publicity, other Energy Intensive Industries (EIIs) have been faring just as badly", claims the CPI.
The joint effect of high energy costs and taxes like the CPF and CRC, could have a catastrophic impact on the Paper Industry. "It is believed that four mills and thirteen papermaking machines will close this year", adds the CPI. "This equates to 1m tonnes of production or 20% of total UK output. In future, well over 50% of UK demand for paper will be met by imports, making the UK the world’s largest importer of paper."
“The combination of the strength of Sterling and very high energy and carbon costs has had a devastating effect on the international competitiveness of several Energy Intensive Sectors, including Paper", says CPI Director General David Workman. "Unless government takes urgent action to rectify this situation we are likely to see further declines in Ells sector, with consequent loss of highly skilled and well-paid jobs."
Read the full press release here.