The line, which creates 23 new jobs, will manufacture about 20,000m3 of components for the window and door manufacturing industries annually.
The investment is designed to increase profitability of the mill and add variety to its product range.
Main equipment will be acquired from February, with the line expected to be completed by the end of 2007.
Component manufacturing involves splitting, planing, elimination of defects and finger-jointing.
Uimaharju sawmill produces 300,000m3 of sawn redwood annually, mainly for the domestic market and the UK.
