The company currently uses the Baltic Press which has the capacity to take 3,000 tonnes, but this will be replaced by a larger vessel, the Baltic Excellent to run between its UK base at Chatham, Kent and its Madrid mill.
Holmen Paper recycling manager Charlie Thompson said: The Baltic Excellent will be able to take 4,500 tonnes per journey, which will give us greater capacity to send material to Spain and bring it back to the UK.
This will ensure that if our Madrid mill wants to increase the amount it receives from this country, we have the capacity to do so.
While the Baltic Press will cease operating between the ports at Christmas, the UK will then be served by two vessels.
The Baltic Bright takes 5,500 tonnes of material to Braviken, Sweden and brings 4,500 tonnes back to the UK. This will continue to operate, while the Baltic Excellent is to run alongside it.
Thompson added: The Baltic Bright leaves Chatham and returns every 10 days and this alongside the Baltic Excellent will increase our shipping capacity to well over 200,000 tonnes during 2007.
The company will top the 185,000 tonnes mark for exports this year and with a larger vessel starting in January, Thompson sees this as recognition from the companys Swedish headquarters of the growing success of UK collections.