The Paper Federation of Great Britain reported a record annual output for the UK sector in its industry figures for 2000.


But hopes for better employment prospects failed to materialise, with seven UK mills closing, resulting in some 1,700 redundancies or 8% of the industrys workforce.


"It has been a year of very mixed fortunes," said Paper Federation director of business affairs Graham Barnard.


"Along with several mills closing, the industry has had to struggle against currency fluctuations, gas prices and the Climate Change Levy."


Total UK production amounted to just over 6.6m tonnes, adding to the year-on-year increases reported since 1982, apart from a minor decline in 1988.


The effects of the strength of sterling clearly took their toll on mill exports, which fell 4% to 1.38m tonnes.


There was also a 6% fall in exports to the EU, which at 1m tonnes is now 73% of the total tonnage delivered overseas.


Imports increased by 1% to 7.7m tonnes; slightly lower than anticipated.


The newsprint sector recorded another record output of just below 1.1m tonnes, a rise of 3%, while coated grades outperformed uncoated and mechanicals edged ahead of woodfrees.


Overall consumption of paper and board rose by just 0.4% to another record level of 12.9m tonnes, an increase of over 90% in the last 20 years.


"It has been a difficult period for the industry but lets hope for a brighter year ahead," said Barnard.


Story by Andy Scott