The new facility will be in addition to SCA’s processing capacity at its Stoke-on-Trent and Welshpool operations and is expected to be on stream in the first quarter of next year.
In conjunction with the investment, the company has signed an agreement to supply Travis Perkins with a "range of planed softwood products".
SCA Timber Supply managing director Neil Emsley said that the development underlined its commitment to the UK builders merchants sector.
The company already has wholesale facilities in Hull at King George Dock, but has not announced the precise location of the new plant. It is expected to create new jobs.
