DS Smith CEO Miles Roberts has warned that the UK manufacturing sector could decline due to changing environmental policies.
Speaking with the Guardian, Roberts said the UK’s decarbonisation policy isn’t as clear as those in Europe, meaning DS Smith chose a £78 million investment in a paper mill in France while waiting for more clarity from government before investing in upgrades in the UK.
The French paper mill, set to run early 2025, will install biomass burners to replace old coal-fired boilers.
The furnaces will run on waste wood from households, packaging and furniture from industry – it won’t use wood directly from forests – therefore, a more attractive and sustainable investment, especially as the paper industry is one of the most energy intensive.
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“What we’re seeing from the US and EU are some considerable incentives, financial support for us to invest in these sorts of solutions,” he added.
The EU has launched a Green Deal which offers industries subsidiaries to reduce carbon emissions and manufacture technology to aid in the fossil fuel transition.
Roberts added that DS Smith and other companies are “starting to take advantage” of initiatives set by the EU.
“If you are committed to carbon neutral and it is far more attractive to invest in those solutions elsewhere, what you’ll see is manufacturing decline in the UK,” Roberts continued.
