International Paper has filed a planning application with Aberdeenshire Council to undertake an estimated 430,000 expansion at Inverurie mill.
"The project will add a building within the mill site," said International Paper Europe president, Paul Herbert.
He said the project would improve production and speed distribution.
A spokesman for Aberdeenshire Councils planning department said an application was filed on 27 September for new accommodation that would add 460m2 of floorspace.
The application should be dealt within two months.
The move follows the shutdown of PM3 and PM4 at Inverurie this year "to meet capacity with demand" (PrintWeek, 20 July).
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