Austrian timber processing group Mayr-Melnhof Holz (MM Holz) is set to invest €30 million ($41 million) in a combined heat and power plant (CHP) and pellet production facility at its Frankenmarkt site in Upper Austria.

MM Holz says 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,’ the company said in a statement on its website.

‘A lot is happening in the timber industry at the moment and this investment is a clear signal (that we are) looking to optimize and develop our existing locations….(but) we need to continue to evolve and to grow even further,’ the company said.

The Frankenmarkt site is one of four sawmills operated by MM Holz, which also has four other wood-processing facilities. The mill is located on a site that dates from 1667 and produces more than 400,000m³ of sawn timber for markets around the world.

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