Accrol announced that it will proceed with the construction of a sustainable paper mill, following a strategic review conducted with the help of the professional services network Deloitte Touche Tohmatsu Ltd, putting the company’s development plans into practice.
Facility construction costs are not expected to exceed £10m and the investment will reduce volatility in input costs for the tissue converting business.
The forecast is that the plant will start operating in mid-2025. In addition to building a paper mill, among the medium-term ambitions of the company is to continue focusing on its core business of converting tissue – toilet paper and kitchen towel – capable of reaching £250m of revenue, of which 10% to 20% will be made up of higher margin licensed third-party brands.
Accrol Group Holdings plc (LON:ACRL) is the UK’s leading independent tissue converter, producing toilet tissue, kitchen towel, facial tissue and biodegradable wet wipes. The UK soft tissue market is worth £1.6bn with private label products comprising circa 50%. Accrol is the leading supplier to the private label market, which is growing at over 8% year on year.