The Confederation of Paper Industries has hailed SAICA and DS Smith's investments in recycled paper production after it published figures showing a sharp drop in UK production in 2009.

The CPI's preliminary data for last year showed the UK production and consumption of paper and board fell by 14% and 10% respectively, but the trade body is taking heart in the fact that the recovery rate for used paper products improved.

Last year, 90% of fibrous raw material used by the sector was recovered paper and board and the CPI said this was likely to increase over the coming 12 months.

CPI recovered paper sector manager Peter Seggie also highlighted the importance of investment in new facilities such as St Regis' lightweight recycled packaging paper mill in Kent and the SAICA corrugated mill near Manchester.

"2009 was a demanding year for the industry but it was great to see new paper and board making come on stream to reverse some of the recent decline in domestic paper and board manufacturing," he said.

Seggie said the investments showed there was still scope for a successful UK paper and board industry as demand was greater than domestic supply and further investments would help reduce the trade imbalance.

"However, UK government policy must support further growth in the manufacturing sector if investments like SAICA and St Regis are to be replicated," he said.

Last week, SAICA gave the go ahead for its £290m recycled paper mill in Partington Wharf.

In June, St Regis owner DS Smith opened the doors to its Kemsley mill following a £104m revamp to produce lightweight corrugated material.

The CPI also welcomed German firm PALM's investment in a newsprint mill in Norfolk.

Full figures on the paper and board industry's performance in 2009 will be published in March.

CPI PRELIMINARY 2009 DATA
Figures in tonnes

UK paper and board production 4.3m (-14% on 2008)
UK paper and board consumption 11.5m (-10%)
Volume of material collected for recycling 8.1m (-7%)
UK recovered paper usage 3.8m (-6%)
Recovered paper exported 4.5m (-8%)