The West Midlands-based converter has also added a new warehouse facility of 1,858 square metres, which brings its total operation size to 7,432 square metres.
Joint managing director Jason Middleton said the addition of the Pasaban will put the company in a position that no competitor can rival.
The synchronous sheeting machine is a high-speed Pasaban 1600 featuring the latest technology, capable of handling reels up to four tonnes.
It has the capability to sheet from 320mmx450mm SRA3 size, to a maximum of 1,600mmx1,600mm, with core sizes ranging from 70mm up to 300mm.
"This new development strengthens our position as the merchant's merchant exclusively supporting the merchant trade," said sales manager Ian Pentland.
The additional warehouse facility boasts 7,000 pallet locations, providing a total stock holding of 12,000 tonnes.
Formed in 1976, Middleton Paper has been serving the needs of the paper, print and packaging industries with customers both in the UK and abroad.
Its product range includes packaging materials, publication and fine papers both reels and sheets, a trade conversion service and recycling facility.
Middleton Paper employs 130 staff with a turnover of around 20m, and converted some 70,000 tonnes of paper in 2003. The firm is one of six that form the Middleton Group, which has a turnover of 30m.
Contact: 01922 633333
Story by Andy Scott