The company said its plans will form part of a strategy for 2007-2011 which will be announced later this year.

It is also looking at various new product possibilities, including the production of floor panels.

Pfleiderer Grajewo will launch into MDF production during the third quarter and is also planning to start laminated board manufacturing in Russia.

The company’s revenues in Russia are predicted to be about €20m in 2006, growing to about €80m by 2008.

Pfleiderer Grajewo is continuing negotiations to buy the minority stake of Prospan SA from the Polish government.