Marketing director Malcolm Sinclair said the investment was part of a steady pattern of growth for the Fife-based mill, which has involved injecting 2.7m into the reorganisation of its finishing area.

In light of current market conditions, Sinclair said the independent company was of a size that it was able to react quickly to any change in conditions.

The market remains challenging, but to remain successful we need to invest wisely in our plant and products, he said.

The investment in its paper machines corresponds to an improvement in the paper formation of its products, which has raised the standards of its premium uncoated graphic grades.

These include the Mellotex, Advocate, Naturalis, Rothmill and Cypher product ranges.

Sinclair said the mill would aim to increase its production capacity of 150,000 tonnes per annum, as part of a five-year plan to add 30,000 tonnes.

Further initiatives would include the launch of at least one new board product in the uncoated area.

The company is also seeking to grow its worldwide sales of 100m, 50% of which now comes from export sales.

Germany remains its largest single export market, with sales of 15,000 tonnes per annum.

A mill-wide computer system to improve production tracking and customer service is to be installed in 2005 and will cost in excess of 1m.

The Glenrothes mill produces both uncoated and coated employs 580 staff and is both ISO 9001 and ISO 14001 accredited.

Story by Andy Scott