The company has almost doubled the warehouse capacity of its existing Northampton site, which will now store over 4,000 tonnes of paper and board.

Fedrigoni will relocate its head office to the site, and increase its flexibility by reducing the minimum order to 25 sheets for its range of specialty papers.

Fred Haines, Fedrigoni sales director, UK and Ireland, said: "This latest investment allows us to grow our business with volume users that require a good depth of stock for next day delivery.

"Our aim is to attack the market at both ends. With the growth Fedrigoni achieved in last year's difficult economic climate, we are confident in continuing with this in 2011 as long as we invest in improved service and availability."

The company declined to comment on the exact sales volume figures that had increased by 2010 year on year.

Fedrigoni will continue to grow in the digital Indigo market where Haines said it is "very strong".

"We also see specialist paper sales growing because when print is chosen as the communication medium the end user wants to have a bigger impact which speciality grades can bring," he said.

Key challenges for 2011 include avoiding bad debts and managing exchange rate fluctuations.

Fedrigoni has also teamed up with merchant Paperlinx's DeliveryCo, and from January all paper consignments will be delivered by the logistics company.