The use of solid wood waste like pallets or beams for the production of wood-based panels has been in practice for many years. There is also a considerable amount of waste composite materials containing coated wood-based panels that has not been used for recycling. Large quantities of such wood waste accumulate during the production of particle- and fiberboards, when working and processing wood-based panels in the furniture industry, and in the disposal of furniture. At the Wilhelm Klauditz Institute, a multistage chemo-thermomechanical process was developed, allowing the recovery of particles and fibers from old furniture and production residues with a simultaneous separation of coatings, edges, and other nonwood elements. The process fulfills economical and ecological demands. It is possible to manufacture boards from the recovered particles and fibers, with the same or even better properties than the initial product without adding fresh particles or fibers. That includes the technical properties as well as the formaldehyde emission. There are two industrial plants in operation: the largest has an annual capacity of about 30,000 tons of dry recovered particles. An increase to 50,000 tons is planned for 1997, and more plants are planned. The process creates a significant raw material source and can be used by wood-based panel manufactures, the furniture industry, disposal companies, and others.