The new mill will have two integrated planing lines, a double bandsaw, two mini-bundling lines and a flexible packaging unit, the company said.

Output is projected to be 110,000m3 of DIY-related products for retail chains and professional building materials outlets. Most of the raw matyerial will come from the company’s Gruvön and Kopparfors sawmills.

A new distribution and order picking centre is also being developed with work to start in the autumn and scheduled to be completed in early 2009.

A spokesperson said the investment was part of a Stora Enso Timber’s strategy of developing further processing capacity and increasing profitability within the DIY supply chain.