Ahlstrom will employ about 30 new staff at its �19m plant

The Ahlstrom facility, at Chirnside, will create about 30 jobs and will produce materials for tea bags and infusions.

Berwickshire MSP John Lamont carried out the official groundbreaking ceremony at the site.

He was joined by representatives of both Ahlstrom and Scottish Enterprise Borders.

Mr Lamont said he was delighted to see the expansion taking place at the site.

The machine we are building is the first of its kind in the world, and to bring the investment here, to Chirnside, is extremely satisfying Michael Black Ahlstrom managing director

"We all know what a great place the Borders is to live in but this investment is a clear sign of the attraction of the Borders as a place to do business," he said.

"This expansion is a symbol of the success of both Ahlstrom and the Scottish Borders and the investment in our community is a real boost to the Borders' economy."

Ahlstrom Chirnside Ltd's managing director, Michael Black, said it was the largest investment at the site since it opened in the early 1970s.

"The machine we are building is the first of its kind in the world, and to bring the investment here, to Chirnside, is extremely satisfying," he said.

"It is an indication of the trust which Ahlstrom, a globally-operating Finnish company, is willing to place in the capabilities and work ethic of the people in Chirnside."

Diversify economy

SEB is supporting the project with a �1m grant towards initial groundwork and is also investing in a training programme for the new staff required.

It's senior director of operations, David Gass, said: "Attracting and keeping such companies of scale is vital if we are to continue to diversify the local economy.