AS the construction sector gradually pulls out of recession, Europe's

largest timber merchant group is investing in its Scottish operation.

Raab Karcher Timber has substantially increased the size of its timber

engineering activities by acquiring a 30,000 sq ft factory in Glasgow's

Gorbals.

The move creates 10 jobs with potential to more than double that

figure. It will retain its only other Scottish site, also in Glasgow, as

a merchant's depot.

The company is aiming to become the major player in the Scottish

market for trussed rafters (pre-manufactured wood roof frames) used in

housebuilding and other applications. A turnover of more than #1m is

expected for the first operational year of the new factory.

Glen Lyon, director of the firm's Scottish timber engineering

division, said: ''We can see improvement and growth in the marketplace.

We did operate a trussed rafter manufacturing operation at our other

site over the past two years, but there were space restrictions. This

site will allow us to expand gradually.''

Only one problem exists -- finding skilled people. The Gorbals

Initiative, responsible for local economic regeneration, is assisting

the firm to find and train local people. The initiative sees the Karcher

investment as a sign of increasing business confidence in the local

community, where #150m will have been spent on improvements by the turn

of the century.