Plan for 400-jobs Goole tissue factory will not go ahead after Finnish firm pulls out
Plans for a huge tissue paper mill in East Yorkshire have been scrapped after the Finnish company behind the scheme pulled out.
Located on a 211 acre site in Goole and led by paper company Metsä Tissue, the development was first announced in 2023, with claims that the scheme could lead to the creation of over 400 jobs.
On its announcement, plans for the developement were praised by then Prime Minister Rishi Sunak.
Property development firm Wykeland Group, which owns the long-term development rights for the site, said it is now speaking to other companies which may be interested in investing in alternative uses for the land. The site has planning permission for manufacturing and warehousing uses.
In a statement given to Goole Times, Tobias Lüning, senior vice president (commercial) and managing director of Metsä Tissue GmbH, said: “Since announcing our plans in 2023,we have worked closely with the local community, businesses and authorities across East Riding of Yorkshire to bring the tissue mill project in Goole to life.
“However, after extensive pre-engineering, permitting processes and financial evaluations, we have decided not to proceed with the project.”
Planning permission on the site was granted in September of this year.
Previous plans would have seen Wykeland Group sell the site to Metsä Tissue once planning had been granted.
A press release from Wykeland issued in 2023 said that the project would be built in several phases over the coming decade, with plans to create over 400 jobs on the site during that time.
The company said the facility would “significantly reduce” the quantity of tissue products imported into the UK and Ireland, increasing the UK’s self-sufficiency by more than 30 per cent.
In a statement issued today, Wykeland managing director, Dominic Gibbons, said: “We’re disappointed that Metsä Tissue has decided not to proceed with this development following the substantial amount of work, over the past three years, by ourselves and other stakeholders to deliver a detailed planning consent in early September.
“However, the site now has full planning consent for 3m sq ft of manufacturing and high-bay warehousing space, and benefits from attractive Freeport financial incentives, so it offers a very appealing investment proposition.
“We had put plans in motion in anticipation of Metsä’s decision and we’re now talking to prospective alternative end users who are interested in realising the potential of this key site.”
Speaking on the scheme in September of 2023, then Prime Minister Rishi Sunak said: “Metsä Tissue’s investment is good for Yorkshire, good for our economy and good for sustainability.
“This announcement is another example of the UK being the first choice for European investment and delivers on my commitment to grow the economy, creating better-paid jobs and opportunity right across the country.”