Malaysian pallet manfuacturer Berjayapak has found a creative outlet for its timber offcuts – making educational toys for IKEA.

The Penang-based company predicts sales of the educational wooden toys to rise to M$1.8m this year, up from M$1m in 2005.

Berjayapak said it was constantly looking to find new products from existing resources.

The company’s main operation is supplying heat-treated, kiln-dried and fumigated pallets.

It plans to invest M$20m setting up a 60,000ft2 presswood pallet factory next to its existing 240,000ft2 site. The company also recently spent M$15m installing a central vacuum to extract sawdust into a boiler which feeds its heat-treatment facility.