Paper Federation blames strong pound for plant closures

The Paper Federation and representatives of other paper-related trade associations have blamed the strong pound for the loss of UK papermakers export markets and plant closures.

The Paper Federation and representatives of other paper-related trade associations have blamed the strong pound for the loss of UK papermakers export markets and plant closures.
The consensus followed a meeting on 11 July at the offices of the Confederation of Paper Industries in London. "There was a feeling that government was not listening to industry and that as a consequence the UKs manufacturing base was being destroyed," said Peter Scott, director general of The Paper Federation.
Scott said the exchange rate between sterling and the euro was "the single most important issue" facing members of the federation. He said the meeting was part of an ongoing programme to "lobby hard on the damaging impact" of the exchange rate.
"The industry has been having a difficult time," he added. Scott said he could see the situation becoming worse if the government failed to take action.
Other groups represented at the meeting included the British Wood Pulp Association, Flexible Packaging Association, Periodical Publishers Association, and PICON.
The Paper Federation now hopes to enlist members of the UKs other energy-intensive industries to discuss the problem.
The UK paper industry has been severely hit by the strong pound / weak euro in 2000. Inveresk reported losses six times worse than expected and cut 20 jobs (PrintWeek, 23 June), while Mayr-Melnhof is also shutting its Calthrop mill with the loss of 170 jobs.