Leicester toilet tissue factory is set to create 100 jobs
A leading toilet tissue manufacturer is set to create 100 jobs by building a new factory.
LPC Group wants to invest £40m on a second paper mill next to its existing site in Hamilton, Leicester.
The company says it needs the factory to meet soaring demand for its products. It is currently having to import paper from Germany to make toilet tissue and kitchen rolls.
The company supplies all the major supermarkets, which sell its products under their own names.
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Sales of so-called "own-label" goods have surged during the recession as shoppers have shunned leading brands to cut their bills.
An LPC (Leicester Paper Converters) spokesman said: "It was a trend that was ongoing anyway. The recession has accelerated this, which is why there is such a demand."
The spokesman said the new mill would need planning consent, but said the company was confident of securing it.
Salim Tejani, LPC project director, said: "Building an additional paper mill near to our other plants in Leicester ensures we can import less paper into the UK, which reduces our carbon footprint, and continue the drive to further improve service to our customers."
This expansion will help strengthen LPC's position as the leading manufacturer of "own-label" tissue products in the UK. The company currently has a paper mill and tissue manufacturing plant in Hamilton and a tissue factory in Mountsorrel. It employs 640 people across the two sites.
LPC produces three million toilet and kitchen rolls a day at the two factories.
Martin Traynor, managing director of Leicestershire Chamber of Commerce, said he was delighted jobs were being created by the company.
"This is excellent news for Leicester economy," he said.
The number of people out of work and claiming Jobseekers' Allowance in the city and county rose by 337 to 25,222 last month. The figure has doubled since June 2008.
LPC Group saw sales in the year to September 30 rise by 11% to more than £230m. The company said it was targeting sales of £300m this year.
The group has seen sales more than treble over the past eight years, thanks to a £75m investment programme.
LPC was founded by 1980 after company president Shiraz Dharamshi Tejani and his brothers had problems getting tissue for their father's chemist shops. They launched a small manufacturing business in Norman Street, Leicester, selling to small stores.