Hexham manufacturer Egger UK announced a £15m investment to create a new recycling plant.
The Northumberland operation, which is part of a global group, said the move will improve the quality of recycled wood used to make its chipboard panels. Using new technology, the plant segregates, cleans and chips waste wood that would have previously been burnt or sent to landfill.
Egger said the facilities - which began production in August - and the high quality recycled material processed means it can increase the amount of recycled wood in each chipboard panel it produces. Alex West, product manager at Egger UK, said: "Increasing our recycled content answers the demand from the interior design, furniture, and housebuilding industries for more environmentally conscious products.