Kronospan has been fined a total of just under £7,000 after taking too much water from a bore hole at its plant there were fears that land subsidence could be caused.
The company admitted exceeding the amount of water it could take under its abstraction licence rate for the Chirk, Shropshire plant during an appearance before Wrexham magistrates.
The Environment Agency prosecutor told the court that Kronospan had continued to take too much water, despite warnings.
In mitigation for Kronospan it was said that more than £300,000 was being spent by the company to find other supplies, including a proposed liaison with British Waterways to pump water from the Llangollen canal.