The Confederation of Paper Industries (CPI) has released preliminary figures showing that UK production of paper and board was 5.2m tonnes in 2007, down 6.4% on 2006.

Meanwhile, UK paper and board mills used just under 4.1m tonnes of recovered paper, a 3% decline from 2006.

Two UK paper mills closed because of unprofitability in 2007, representing around 250,000 tonnes of capacity.
 
The decline in domestic usage of recovered paper has meant exports for 2007 are likely to be around the 4.6m-tonne mark, with more than 75% of this material destined for the Far East.

With no closures in 2008 and new capacity planned, it is expected that about 5.3m tonnes will be produced this year, with domestic usage of recovered paper falling to around the 4m-tonne mark.

CPI director general Martin Oldman said: "In the UK, great strides continue to be made in increasing the tonnage of recovered paper being retrieved from the waste stream, and currently there is a very buoyant global market for this material.

"However, it is vital that the UK retains a strong paper manufacturing industry to ensure that there is a reliable internal market for recovered paper should there be any decline in the global demand for this valuable raw material."