Honda Trading Europe is conducting a feasibility study into the prospect of setting up its own paper merchanting division at its Swindon base.


The firm is more commonly known for its supply of automotive parts and accessories than paper, but a decision on the merchanting business is expected in the next few months.


"We are still at the feasibility study stage at present, but if its viable and cost-effective it will happen," said Rob Bakewell, who is setting up Honda Tradings new merchandising division in Swindon.


"There is a market for our own internal usage, but we need to find out if there is an outside market available as well," he added.


Honda Trading uses between 2,000 and 3,000 tonnes of paper per year, all sourced through European paper merchants.


"We source paper in Japan and supply it to our sites in the US very successfully," said Bakewell.


Honda Trading has achieved a good sales performance in waste paper. The company sells domestic and foreign paper products, such as materials for paper manufacture, stencil paper for corrugated cardboard and printing paper.


Honda Trading supplies and stocks items such as timber and soya beans along with the more traditional machinery and automotive parts for Honda cars and motorcycles.


Honda Trading Corporation founded Honda Trading Europe in 1990 to support automobile prod-uction at the groups UK manufacturing plant.


Story by Andy Scott