Fast facts: Kemsley Paper Mill
ROUND-UP APRIL 2019
In Depth 1924
site built to
manufacture
newsprint
830k
tonnes of paper
made at Kemsley
Mill every year
75MW
electrical capacity
of E.ON’s new
CHP facility
E.ON agrees deal to build new
CHP plant at Kent paper mill E.ON UK / DS Smith
Sustainable packaging solution
provider, DS Smith, has signed a
contract with E.ON to construct
a state-of-the-art combined heat and
power (CHP) facility at Kemsley Paper
Mill near Sittingbourne, Kent. The
facility will replace the existing CHP
plant and extend E.ON’s partnership
at the mill for the next 20 years.
The new plant will enable a carbon
reduction of 36,000 tonnes per year –
the equivalent to 30,000 medium-sized
cars driving over 6,000 miles a year.
Once complete, it will have an electrical
capacity of around 75MW, generating
steam and power for DS Smith’s
production processes at the site, which
manufactures 830,000 tonnes of paper
at the mill annually.
The programme will be one of
E.ON’s largest customer solutions
projects in more than a decade. The
energy company will finance, build and
operate the CHP plant. The two-year
construction phase is due to start
this year with the facility planned for
commission in 2021.
“Embracing world-leading innovation
to minimise our environmental impact
is a key corporate goal for DS Smith,”
said Colin McIntyre, CEO of DS
Smith’s Paper and Recycling Divisions.
“Partnering with E.ON to develop a
state-of-the-art solution to meet our
long-term energy requirements is a
vital element to achieve this ambition.
We are looking forward to construction
beginning later this year.”
Michael Lewis, CEO of E.ON
UK, added: “Energy security, lower
costs, and greater efficiency are key to
a sustainable future for manufacturing
sites and we are proud our bespoke
solutions will contribute to our ongoing
relationship with DS Smith and future
success at the Kemsley site.
“In upgrading and optimising energy
operations on-site, we can ensure DS
Smith has a reliable and efficient energy
supply that allows the business to get
on with what they do best – providing
quality and more sustainable packaging
for its customers and, ultimately,
consumers all around the country.”
UK industry leaving
China for Europe
Increased costs and rising political
instability may be driving manufacturers
to reduce sourcing from China in favour
of doing more business with European
suppliers, a new report suggests.
The Q4 2018 Global Supply Chain
Risk Report, published by Cranfield
School of Management and Dun &
Bradstreet, found sourcing from
high-risk countries is most prevalent in
the manufacturing sector, but this
reduced by 25% during the last quarter
of 2018, suggesting businesses may be
adopting a more cautious approach.
“China is no longer the rich source
of low-cost manufacturing that it once
was – it is becoming more industrialised
and wages are on the rise,” said Dr
Patrick McLaughlin, senior lecturer in
manufacturing management at
Cranfield University. “Countries like
Vietnam, Malaysia and Indonesia to
some extent all have a lot of what
China had to offer in this regard, as
well as manufacturing capabilities that
they are keen to develop.
“Even though Brexit is dominating
the European agenda, it is less of an
issue for businesses that source globally,
as they are already used to tariffs and
customs clearances. Therefore, resourcing
into Europe – even if the UK
leaves the EU – may be seen as a safer
bet than staying in China.”
“China’s economy is very much
based on exports, and on spending on
infrastructure and real estate at home.
In recent times, residential markets have
slowed down substantially, meaning
investment is not rolling over,” explained
Professor Sunil Poshakwale, professor
of international finance at Cranfield
University. “At the same time, many other
world economies are slowing down, so
demand for goods and services has
decreased. Also, China’s requirement
that foreign companies wanting to build
their businesses there have to pass on
their technology is a barrier to easy
access for foreign companies.”
8 www.manufacturingmanagement.co.uk
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