The goal of the new company was to rationalize the operation. All the former mills were demolished and a new facility was constructed. A major concern was the construction of the Kongsvinger Line, which would make it easier for forest owners in Aurskog, Nes and Vinger and to instead sell their lumber to Kristiania (Oslo). By cutting operating costs at the mills, the investors hoped to compensate for the reduced transport costs by railway. The new mill was situated on the south side of the river, on the lot Kjøbmandsdalen. At the time the new mill opened it had about 100 employees.