The acquisition includes the main sawmill at Annan, which comprises a pallet mill and a band mill, but not Kerr Timber’s waney slat business based at Milnfield.

Doug Wentworth, managing director of Taylormade, said having the two sites will achieve economies of scale and provide an even better service for customers. He added: “We knew we would be reaching our capacity soon, so this opportunity was perfect in view of timing.”

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Mr Wentworth bought Taylormade more than 10 years ago in a management buy-in, since when sales have grown from 20,000m3 to more than 100,000m3 in the current year. A £900,000 investment in a second drop sorter will help increase production further in 2007.

&#8220We knew we would be reaching our capacity soon, so this opportunity was perfect in view of timing”

Doug Wentworth, managing director Taylormade Timber

Mr Wentworth said: “The purchase of Kerr Timber will not affect investment at our Sherburn Hill location where we employ 85 staff. We have recently agreed the purchase of 12 acres of adjacent land there and 10,000ft2 of additional warehousing.”

Kerr employs 25 staff and produces more than 25,000m3 a year, but Mr Wentworth is already looking at increasing throughput and expects capacity to increase sharply at the Annan site.

He went on: “I expect the two companies to be producing around 150,000m3 by 2007.

“We have expanded well in the past 10 years and we have invested quite heavily. I am pretty convinced about the future of UK sawmilling based on our performance.”