The paper manufacturer is investing £17m in the facility at its existing Shotton site which, once up and running, will sort dry recyclables such as plastic bottles, cardboard, newspapers, magazines and metals.

Its construction is estimated to be completed by January 2011 and, at full capacity, it will sort 200,000 tonnes of recyclable material, of which 120,000 tonnes will be newspapers and magazines.

Tony Burke, Unite assistant general secretary, said: "This is great news for our members in Shotton and the community at large. It shows the commitment of the company to innovate and invest in green technology."

Burke added that the creation of around 160 jobs in the current economic climate was "more than welcome".

The materials recovery facility investment has been supported by the Welsh Assembly Government, with a £1.7m Single Investment Fund grant.

UPM Shotton Paper is part of UPM and annually recovers around 640,000 tonnes of newspapers and magazines.