By the 1900s the company had challenges making ends meet. The company therefore in 1905 initiated a program to totally revamp its operations. The three head saw mills were demolished and replaced with a new, steam-powered head saw mill adjacent to the edger mill. The pulp mill was expanded to handle 15,000 tones annually, powered by the new Tistedalsfossen Power Station. Finally a new chemical pulp mill was to be built at Kaken. A complicating factor for the power station was that the company only owned about two-thirds of the waterfall rights. Finally the Tista Canal was built, allowing direct access from Kaken to the port.