Wood recycling will be expanded in the north-west and West Midlands thanks to a £500,000 cash injection by the Waste & Resources Action Programme (WRAP).

West Bromwich Pallets Ltd and based Plevin & Sons Ltd have received more than £106,000 and £395,000 respectively from WRAP’s £10m regional market development fund. The funding will allow the companies to recycle 235,000 tonnes of wood waste between them by 2006.

Plevin & Sons will use the money to install a new plant capable of processing up to 40 tonnes of recycled wood per hour. The company will screen timber from local authority sites and produce woodchips for the chipboard industry, as well as for animal bedding, equestrian riding surfaces and garden mulches.

West Bromwich Pallets will invest in a second production line and decontamination facility on a new eight acre site. The line will produce several wood fibre products, designed for use in children’s playgrounds, landscaping, equestrian surfaces and bedding.

The company aims to develop new product lines and create jobs within the community.

WRAP special projects manager Mervyn Jones said: “Studies have suggested that there are huge volumes of wood still being sent to landfill. We recognise that regional and local delivery of support to recycling businesses is an integral part of market development.