SCA is to invest €22.6m in an automated sorting system for its sawmill in Tunadal, Sweden.
The new machine will simultaneously reduce production costs and increase production volumes, said SCA.
The company added that it will also help improve quality and increase the yield of finished wood products eminating from the consumed timber volumes.
In May 2007, SCA announced a £3m investment in a kiln at the Tunadal sawmill, with a capacity of 100,000m³.