The agreement covers the gas to feed a combined heat and power (CHP) plant on the site, and will help reduce overall CO2 emissions. A spokeswoman for Aylesford Newsprint said Npower Cogen had been supplying steam and electricity through the CHP plant since 1993, and had invested around £60m into the facility.
The revised agreement would help Aylesford remain competitive in the production of quality newsprint and support the development and expansion of its product portfolio, a statement from Aylesford said. The spokeswoman added that last July the company had launched a product with a higher brightness that was suitable for supplements and retail flyers.
Aylesford Newsprint managing director Mark Lunabba, who was appointed in November 2011, said he was tasked with improving the efficiency and the profitability of Aylesford. "The agreement on the gas price means that we are now on a comparable price basis with Europe," he said.
He also said the number of full time employees at the mill had been reduced by 10% to 285.
One area that still caused Aylesford problems was the quality of material it received from commingled streams, Lunabba said. "This is something of a catastrophe for the UK and it’s a pain for us," he added.
Fraser Blunt, head of npower Cogen & Generation Services, said he was pleased to continue to work with Aylesford. "This revised contract gives confidence to all parties for at least the next four years, and shows the benefits of a combined heat and power plant for the UK economy," he said.
