The Middleton Recycling sale, which was completed last Wednesday (1 October), took place after DS Smith approached Middleton Paper with a view to buy the division after identifying the Midlands as an area where it could actively seek to realise growth opportunities. All of the staff that work in the division have been kept on.
Middleton's recycling division generated around 9,000 tonnes a year of fibre and deals with a wide range of paper and cardboard grades.
“It is a strategic fit for growing our business and it extends our coverage in the area,” said DS Smith Recycling Division chief executive Peter McGuinness.
Middleton Paper's separate multimillion-pound investment programme has seen it buy a Pasaban 1850 sheeter, which is due to be installed in March. The firm will also upgrade its existing Pasaban 1650 sheeter to the latest specifications.
The new machine will be the third new sheeter purchased by the company, which also operates three other sheet-cutters, a millwinder and two guillotines, over the past 10 years.
Middleton looked at a range of alternatives but despite the higher price of the Pasaban machinery compared with others, the firm decided that it was the best option for its requirements.
The investment will significantly enhance the firm's sheeting capability and sizes from 300x310mm up to 1,850x2,200mm will be available in a substrate range from 40–600gsm.
“This investment clearly puts us ahead of our competitors in UK paper and board conversion and ensures that we can provide our customers with the best and most efficient service possible,” said Middleton Paper managing director Jason Middleton.
The investment programme also encompasses a new stock range strategy, which will enable the firm to offer consistency and a greater depth of stock.
“We’re increasing the storage in our warehouses, putting additional racking in and making significant increases in our stock holding as well. We’re looking at increasing our delivery fleet from early next year as well and are planning to take on more staff,” said Middleton.
Middleton Paper, and its paper merchanting division, Vision Paper and Board, supplies the UK market with around 80,000 tonnes of paper per year. It is part of the Middleton Group, which has a turnover of £70m and employs more than 250 people.
The firm supplies products to a varied customer base including commercial print, publishing, print management and the graphical and packaging board sectors. It also supplies business papers to stationers, wholesalers and education authorities.
