Borders-based Oregon Timber Frame Ltd has invested £1.5m in premises and machinery at Selkirk to meet demand for timber frame construction from UK housebuilders.

The move – some 15 miles down the road from Oregon’s current premises – will enable production to treble from 1,500 to 6,000 units a year.

The company has bought the former Via Systems factory at Dunsdale from Scottish Enterprise and Oregon managing director John Merry said the move to the new site will take place in stages to ensure continuity of manufacturing. Production at the new premises will begin in September.

The company is moving from a 15,000ft2 factory to a 7.5 acre site which will house a 34,000ft2 plant initially. A further 16,000ft2 will be added in the second phase of the development and Mr Merry said there is plenty of room for further expansion.

Around £350,000 will be spent on equipment including optimiser and panel saws, a dust extraction system and pneumatic air guns.

Mr Merry explained: “We are not an automated business. Our customer base is the house builder who wants all different shapes and sizes so we are a manual operation.”

The existing workforce will move with the company which has already taken on an additional 22 people and could have a further 14-22 jobs in the next six months.

Mr Merry said: “The market is exceptionally strong, particularly in England, where there is growing demand from housebuilders for offsite timber frame construction.

“Our business there is growing by 50% a year and now constitutes 25-30% of our output. The new premises at Selkirk gives us an excellent north/south location and all the capacity we need to service this business into the foreseeable future.”