The plant will house a 10.5m-wide paper machine, which will have the capacity to produce 400,000 tonnes of recycled newsprint a year.

Palm Paper managing director Derek Harman said: “We looked at many sites across the UK and King’s Lynn came out top of the list, because the project was welcomed and fits well with our logistics for the target pressrooms we aim to serve.”

The company is currently in the application process with local authorities and start-up of the mill is scheduled for summer 2009.

The UK subsidiary of German-owned Palm Group has announced that 150 direct employees and 150 indirect employees will also be required.

King’s Lynn and West Norfolk Council leader Nick Daubney said: “We are obviously delighted it is coming.
“It has now to go through the formal planning. I believe that construction will start in the next 12 months or so.”

King’s Lynn and West Norfolk Council principal planning officer David Parkin added: “We are expecting the application to be submitted within six to eight weeks.”

News of the project follows last week’s announcement that Ecco Newsprint has picked a supplier for its planned Middlesbrough newsprint mill.

Aylesford Newsprint is also considering increasing its production capacity.

Palm Group was established in 1872, and comprises three paper mills. It has an annual turnover of £500m and employs 2,600 staff.

UK NEWSPRINT CAPACITY
Current capacity per year
• Abitibi Consolidated, Bridgewater: 20,000 tonnes
• Aylesford Newsprint, Aylesford: 400,000 tonnes
• UPM Kymmene, Shotton: 500,000 tonnes

Proposed capacity per year
• Aylesford Newsprint, Aylesford: 200,000 tonnes increase
• Ecco, Middlesbrough: more than 400,000 tonnes
• Palm Paper, King’s Lynn, Norfolk: 400,000 tonne