Make wider paper, lots of it (4)

I believe the answer is:

ream

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'lots of it' is the definition.
'ream' can be an answer for 'lots' (I have seen 'Lots of paper' mean 'ream' so perhaps 'lots' could also mean 'ream'). I am not certain of the 'of it' bit.

I cannot understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for ream that I've seen before include "Widen out (bore)" , "500 sheets, perhaps" , "Make hole larger - lot of paper" , "Lots of paper" , "480 or 500 sheets" .)

I've seen this clue in The Daily Mail.

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