The Scottish mill is also developing new products and planning to expand its sales coverage area.

Executive director Roland MacLeod said Inveresk was looking to break into the US and Canada, areas which he said had great potential.

We are looking very carefully at ways to penetrate the market, said MacLeod, who said the company viewed the US as an important part of its market development.

We want to get into the US in the correct way, and stay in. We dont just want to charge in and charge out, he said.

Inveresks operations now comprise the speciality paper mills at St Cuthberts in Somerset and Carrongrove at Denny, Stirlingshire.

Carrongrove is home to the companys Gemini range of SBS boards, producing one-side coated, two-side coated and embossed ranges.

It has a production cap-acity of 40,000 tonnes, but with productivity investments, this could increase to 45,000 tonnes per annum.

MacLeod said Inveresk had learned one hell of a lot from the troubles it went through as a group over the past few years.

These included the closure of its Caldwells mill last year, after Klippan failed to save the operation, and its Westfield mill which closed in 2002.

Inveresk is also in talks to expand its coverage in North America, where it has one stockist in Canada, and is looking at ways to expand its coverage in France.

New product print trials are also being conducted, which could result in new products coming to market within the next few months.

Former Tullis Russell export area manager Ian MacKay has joined Inveresk as business development manager, and he will also take responsibility for Scotland.

Money will also be spent on training and development of staff, an area that MacLeod said had been sadly neglected over the past three years.

This will give people the skills to take this business forward, he said.

By Andy Scott