The family-run company is planning a £5m investment on the site which will be fully operational in time for the start of the company’s exclusive, 25-year contract to supply a new E.ON biomass power plant at Blackburn Meadows in Sheffield next spring.

The Hazlehead site, which supports the creation of 20 jobs, will process up to 150,000 tonnes of waste wood a year.

"The Hazlehead facility will be a fantastic development for us, and with the E.ON contract we are making significant strides towards our growth targets," said managing director Jamie Plevin.

"As well as helping us expand our operations by giving us further capacity for new contracts, Hazlehead will also help us to offer increased processing volumes to existing customers. The addition of the Hazlehead facility to our portfolio brings our total permitted waste wood processing capacity to 350,000 tonnes per year.

"The project will allow us to have an open gate policy for contracted suppliers on all grades of waste wood. Once completed, we will be able to offer guaranteed recycling of a large volume of high and low grade waste wood."

The sourcing of the additional 150,000 tonnes of wood waste for the Hazlehead development will be overseen by business development manager Andrew McFadzean, who has recently joined Plevin as part of its ongoing recruitment drive. He was previously materials manager at AW Jenkinson Forest Products.

As well as processing biomass fuel, Plevin manufactures a range of market-leading wood-based products, including materials for the panel board industry and animal bedding for livestock, equestrian and small animals.