The revelation came as the firm issued its latest trading update.

It expects a stronger second half in 2004, with first-half sales affected by currency levels and economic conditions.

Chief executive Alan Walker said progress was being made in terms of new product and market penetration.

Customers had reacted warmly to new products in the Gemini range, including InverX and Superfine SBS boards, the company said.

Its core product line of two-side coated boards has been trialled and approved in the US, with orders now being received.

Inveresk has sold PM5 at its former Inverkeithing mill for 1.7m.