The project will nearly double mill capacity, upgrading production to continuous press technology, positioning the operation to meet growing demand for OSB in markets across the UK and Europe and securing the long-term future of its employees and the indirect jobs it provides across the region.

Norbord unveiled expansion plans in early 2014 and then secured permissions necessary for the project. This latest news represents the go-ahead for the project from company’s board, with Norbord expecting the expanded mill to come online in the second half of 2017, with no disruption to production in the interim.

"Demand for OSB is increasing rapidly and this investment will ensure we can continue to meet customers’ needs and remain at the forefront of the European industry," said Karl Morris, managing director, Norbord Europe and a senior vice president of the company.

"This investment underscores Norbord’s long-term commitment to Inverness and the Highlands region, and we look forward to continuing to play an important role in the community."

Peter Wijnbergen, Norbord’s president and chief executive officer, said the strategic investment reflected the importance and growth potential of the company’s European operations, "making our already strong European business an even more meaningful part of Norbord’s financial results".

"We have been working very closely with Norbord on their development plans and are delighted to be supporting the company to invest so substantially in its Highland base," said Alex Paterson, chief executive of Highlands and Islands Enterprise.

"This development will put Norbord’s Inverness plant on a sustainable footing for decades to come, and is a huge vote of confidence in the company’s Scottish workforce," he said.

The Highlands and Islands Enterprise is supporting the project with a development grant of up to £15m.