James Jones & Sons Ltd has unveiled £18m plans to expand its Lockerbie site into a national centre for timber processing in Scotland.

The decision, which follows two years of investigation by the company, will be carried out in two phases during the next five years and is being supported by Scottish Enterprise.

The first phase will involve the development of kilning, grading, planing and timber treatment facilities at Lockerbie within the next 12 months, creating 11 new jobs.

A new sawmill will then be built, subject to the availability of sustainable levels of local timber.

Managing director John Kissock said: “This investment marks a firm commitment by James Jones & Sons to developing the long-term future of its operations in Dumfries and Galloway.”

He said the decision to expand Lockerbie was based on several factors, including the “skills and dedication” of the workforce .

James Jones is to apply for planning permission for the new sawmill, while it is confident that current discussions about ensuring future timber supplies will be successful.

The existing Lockerbie mill employs 35 people and processes around 150,000 tonnes of logs annually. Its production will be expanded during 2005 up to 230,000 tonnes, with much of the additional output chanelled into the construction and DIY markets.

The company’s other south-west Scotland mill in Dumfries will continue to operate at existing capacity, with some employees transferring to Lockebie as the expansion takes shape.