Austrian-based sawmiller MM Holz is investing €30m in a combined heat and power plant (CHP) and pellet production facility at its Frankenmarkt site.
The company said the move is part of its pursuit of sustainability and development of integrated processing.
“The operation of a biomass combustion plant is guaranteed to provide the required heat energy for particleboard and wood drying,” it said.
“In the timber industry much is currently changing. This investment is a clear signal towards optimisation and development of our existing locations.
“We must continue to evolve and grow even further.”
The Frankenmarkt site is one of four sawmills operated by MM Holz, which also has four other wood-processing facilities. The mill, on a site which was established in 1667, produces more than 400,000m³ of sawn timber for markets around the world.