Tamil Nadu Newsprint and Papers Ltd, the leading manufacturer of printing and writing papers and newsprint in India, has plans to spend Rs 1000 crore on capacity expansion.

Through the latest decision, the company intends to tap 12-13% market share of the printing and writing paper segment, by 2011-12.

The proposed investment includes setting up a Rs 60 crore cement plant and increasing pulp production to 840 tonnes a day from 720 tonnes a day at an investment of Rs 100 crore. The company currently has a capacity of 245,000 tonne per annum, which it plans to increase to 400,000 tpa by June 2010.

Apart from this, the company is also installing a new machine, imported from Germany, at its Kagithapuram plant in Karur district of the state at a cost of Rs 400 crore. The new machine will have a capacity of 155,000 tpa.

The scrip of the company was trading at Rs 64.70, marginally down compared to previous close. The counter has made 52-week-high and low of Rs 111 and Rs 51 respectively.