The spend will aim to modernize the plant to cope with the growing demand for super-wide reels in the magazine sector, as well as increasing the proportion of biofuel used by the mill.
A new finishing line to produce jumbo reels such as those used on the new super-wide gravure presses, will be added to the mill's PM6, which produces magazine paper. The rewinder from that machine will replace an old one on PM7.
A new biofuel crusher will also be built to increase the volume of biofuels used by the mill to more than 70% by the end of 2006.
In Canada, a strike at UPM's Miramachi mill in New Brunswick has finally ended with a new five-year labour agreement after nine months without production.
The mill stopped producing paper in mid-December last year when around 700 workers walked out. They had been working until then under a previous labour agreement which expired on 30 June 2004.
Story by Josh Brooks
Have your say in the Printweek Poll
Related stories
Latest comments
"Gosh! That’s a huge debt - especially HMRC! It’s a shock that HMRC allowed such an amount to be accumulated."
"Whatever happened to the good old fashioned cash job! At least the banks didn't take 2-3% of each sale. After 30 odd transactions that £100 quid you had has gone."
"It's amazing what can be found on the "web" nowadays!"
Up next...

Business is 'on solid ground'
PCP chairman takes majority stake

Ease of use highlighted
Tech-ni-Fold targets folder performance with new scoring device

Launch due next year
Norske Skog Skogn mill to enter book paper market

Winners announced