A Dingwall sawmill is set to double its output following a £1.6million investment in a new production line.

Munro Sawmills' proposal to create a new slat production line on the site of its old fencing mill has received financial backing from Ross and Cromarty Enterprise, and will provide employment for an extra five workers to complement the existing 22 employees.

The company was established in 1946 and has been producing fencing slats for overlap panels since 1989.  It has invested heavily in the slat line over the years to meet with demand, and this latest re-build will see production capacity increase to 100 cubic metres per day.

The company will also relocate its anti-stain dipping facility and create a new concreted area to hold finished goods stock as well as invest in new equipment for the mill's sawshop.

Philip Blake, managing director, anticipates the investment will improve the company's competitive position against imports from Latvia and Portugal:  "British timber producers have high labour, raw material and overhead costs in comparison with other countries.  This investment will double our productivity and achieve economies of scale which will enable us to win a greater share of the UK market."

The £1,572,000 project has been backed by a financial package from Ross and Cromarty Enterprise totalling £256,700.

Gordon Cox, chief executive of Ross and Cromarty Enterprise said:  "This project is crucial if the mill is to effectively compete against foreign imports.  The new equipment will put them in a much better position to expand their market share so they can secure the long-term viability of the business, as well as significantly improving their efficiency."