Sonae to rebuild Knowsley woodchip factory

PORTUGUESE conglomerate Sonae is to rebuild its controversial chipboard manufacturing plant in Kirkby.

The company has appointed a design team to draw up plans for a plant to be rebuilt on the site of the current factory, which was damaged by a huge fire in June. Two workers were also killed at the plant following an accident in December last year.

The rebuild could be worth up to £30m, but the firm said that the exact project value s not yet known as it is still carrying out a controlled demolition and feasibility studies to see if any of the remaining plant equipment can be reused.

Nigel Graham, managing director of Sonae Industria (UK) said: “Sonae Industria (UK) Ltd has now completed the re-engineering and re-design of the wood yard area damaged by the fire on June 9. Tenders have been requested from a number of specialist contractors for the work that will be carried out over the next nine months, which includes a phased start up of the new operation.”

He added: “Sonae Industria remains totally committed to the UK market and its business partners. The management and staff at Knowsley are fully dedicated to enhancing the relationship with all stakeholders and there is confidence that this new investment will improve operational performance and address reliability issues we have experienced in the past.

“We would like to thank our staff and customers for their continued support.”

The firm, which employs 250 people at Kirkby, said production is expected to resume in two stages – the first will allow it to get up to 80% of its previous capacity by October 2011.

The second, which may need planning approval, should allow the company to resume full production during the first quarter of next year.

Click here to sign up to receive our new South West business news...
Close