A £21 million expansion of a major timber processing operation at Mosstodloch in Moray is under way, with the longer term development expected to create 14 new jobs.

James Jones & Sons Limited is beginning the first phase of a wider master plan for its Moray site, including a new 4,000 square metre building and two additional production lines.

Highlands and Islands Enterprise has awarded the company up to £315,000 towards the cost of the initial phase, with the funding helping to pay for new automated machinery.

The new production lines will allow further processing of timber for construction, fencing and packaging markets.

They will introduce more advanced processing including resawing and post pointing, allowing the company to increase output, improve efficiency and produce higher value timber products for UK customers.

Around 105 people are currently employed at Mosstodloch, with another 48 working at the company’s Forres site.

Robert Mann, General Manager for James Jones & Sons Sawmills in the north of Scotland, said:

“This initial investment phase is a very exciting step in the continued development of the Mosstodloch site.

“Not only will this bring new capacity to our production it will create a more modern and safer working environment and enable us greater flexibility in meeting our customers’ needs with high quality and exceptional service.

“Investments of this scale require Scottish Government’s support with new planting and restocking of productive woodland to secure the long-term viability of these types of projects.”

The expansion is also intended to reduce the environmental impact of the operation as the business moves towards net zero.

The new building has been designed with biomass heating and will provide a platform for the future installation of solar panels, while the new machinery is expected to use less energy.

Steve Richards, Senior Development Manager with HIE in Moray, said:

“We’ve been working with James Jones & Sons for several years.

“The company is a major employer in Moray and has strong potential for further growth.

“This latest project is about long-term sustainable growth.

“It will help safeguard skilled jobs, create new opportunities and support the company’s transition to net zero.

“It will also strengthen Moray’s role in a sector that’s important to Scotland’s construction supply chain.

“I’m very pleased we’ve been able to provide support and look forward to seeing the new facility take shape.”

James Jones & Sons is family owned and operates 29 sites across the UK and another 25 in Australia and New Zealand, employing around 2,100 people.

Nine of its UK sites are in Scotland, including the two Moray operations at Mosstodloch and Forres.

The company is one of the UK’s largest timber processors by volume, and the investment comes as the industry expects growing demand for timber frame and off site construction systems.

Demand is being driven by increased use of low carbon housing and modern construction methods, putting the expanded Mosstodloch operation in a stronger position to supply a growing UK market.