Powys county council has given BSW Timber plc the green light to start the first phase of a multi-million pound investment programme at its Newbridge-on-Wye sawmill.

A new timber treatment plant, kiln drying chambers, an on-line planing facility and increased sawn timber storage facilities, costing around £3.5m, will be installed in the initial stage of the three year £15m project.

Paul Barham, chief executive of BSW timber said the planning approval will allow the company to expand capacity on site to produce higher quality and more specialised timber, responding to market requirements for a more diversified and added-value end product.

He added: “The new technology will allow us greater efficiencies and increased capacity for kiln drying as well as offering a greater range of specialised timbers using ultra-modern treatment, impregnation and planing facilities.”

Work on the first phase will start immediately with completion expected by early 2006. Jobs will be created to operate the extended kiln system and a further 20 new jobs could be created when future development plans, including increased on-site capacity, more new technology and upgraded log-handling facilities, come on stream.

Alex Brownlie, head of operations of BSW in Wales, said the company, which is the largest private sector employer in Newbridge, had invested significantly in training and improving the quality of jobs on offer at the site. He added: “Now we have a great opportunity to expand on this by developing the site’s infrastructure.”

Dr Geraint Davies, the Welsh Development Agency‘s mid-Wales executive director, said: “BSW’s investment plans deal with the urgent need for more value-added timber processing in Wales – a sector which is critical for the future well-being of our local timber industry.”