Sonae Industria (UK) Ltd has restarted chipboard production at Knowsley following completion of a £25m initial phase of reconstruction after a serious fire in June.

An extensive commissioning process is now under way to ensure all the equipment is running correctly, with production levels at 80% capacity and around 1,000m³ of chipboard being produced per day.

The factory will remain open throughout the Christmas period and is expected to reach around 90% capacity in spring 2012.

“We are naturally delighted that the chipboard production is now operational again and our first boards have been produced,” said Nigel Graham, managing director at Sonae Industria (UK) Ltd.

“The continued support and investment from our parent company in Portugal has not only safeguarded local jobs but also given us the opportunity to improve our operation here in terms of Health & Safety and environmental compliance.

Sonae intends to “radically” change its previous factory layout and operations in response to health and safety concerns from local representatives and community groups.

The £30m second phase of reconstruction, which is expected to include some of the health and safety recommendations, includes reducing dust levels.

“We are pleased to say that despite the challenges of the difficult economic environment, we have fulfilled the majority of our customer orders and we have maintained our full workforce,” added Mr Graham.