A South Lakeland specialist papermaker is looking ahead to the future with growing confidence after coming through tough times in recent years.

Henry Cooke suffered a loss last year and underwent a cost-cutting exercise which resulted in a number of job cuts at the Waterhouse Mills plant, Beetham, near Milnthorpe.

But now the company is fighting back and has just announced a major new investment in new machinery costing around half a million pounds which will

be up and running by the spring.

The investment, creating two new jobs, will enable Henry Cooke to make the most of the growing market for decorative laminated paper which is used in furniture, flooring and wall cladding.

The firm has already enjoyed success by selling in a niche market, but the new machinery will boost both efficiency and capacity and enable Henry Cooke to take a larger market share.

Parent company, the South African-owned Barloworld, has given the green light to the investment, which will be funded by the Beetham paper mill.

Commenting on the investment, managing director Tim Bird told Business Gazette: "It's probably the most significant thing that's happened to this company in the last 20 years.

"It will improve efficiency greatly.

We can make the products more rapidly and that will make them more competitive and more profitable."

The move into decorative laminated paper - a high added value product - will provide another string to the company's bow.

Henry Cooke is already a big player in the manufacture of packaging papers used to protect sterilised medical and surgical instruments.

Globally the second biggest company in this sector, the firm sells much of its product overseas and will continue to operate in that market.

As other UK paper mills have gone out of business or sourced product from abroad, Henry Cooke has also moved into production of coated papers used as packaging in well-known branded products like the two-finger KitKat and Wrigleys gum.

But the decorative laminated paper market looks especially promising for Henry Cooke because it was one of the

few markets with growing demand worldwide.

"It's a sophisticated paper that is not easy to make.

It has certain factors built into it during the production process which necessitate a particular machine configuration," said Mr Bird.

At present, laminated paper accounts for only about three per cent of the company's output, but that figure is projected to rise to around 25 per cent by 2006.

"If it's as successful as we expect it to be, it will ensure Henry Cooke has a sustainable profit line and it will develop over the years," added Mr Bird.

That is encouraging news for a company which, in common with many other manufacturers, has suffered in recent years due to a combination of factors, notably the high value of the pound against most other foreign currencies which hit exports not only to Europe, but also Australia and the Far East.

Henry Cooke exports around 65 per cent of everything it makes.

Add in the rising cost of pulp, higher gas bills and new legislation such as the climate change levy and new pollution prevention requirements, and it is little wonder the company has faced testing times.

"We've had all these things to deal with at a time when we are in a recovery.

To come through it and turn in a profit is not a bad achievement in my view," said Mr Bird.

Now the firm is looking to the future with growing confidence.