Continuously increasing demand for timber puts great pressure on deforestation of large forest areas, which contributes to other environmental issues such as soil erosion, greenhouse gas emissions and the extinction of various animal species and plants. Nevertheless, only up to 20% of timber waste is recycled, with the overwhelming majority of wood ending up in landfills. Technological improvements, in particular increase of processing capacities and the automation of impurity removal increase the efficiency and quality of the recycling processes. Wood waste generated from municipal waste and enterprises consists mainly of furniture, wooden packaging, wood pallets and some construction and demolition wastes. Such waste can be re-used for production of building materials or converted into bio-fuel.