Waste wood is set to be processed at Isfield.
County planning committee members are being recommended to give the proposal planning permission at a meeting next Wednesday (August 26).
The site in Lewes Road is already used to process green waste for composting.
KPS Composting Services Ltd hopes to process 5,000 tonnes of clean waste wood each year.
The wood would come from household waste recycling centres and some waste transfer stations, such as the new one at Maresfield.
Once shredded, the woodchip would be stored on site before being sent away for use in chip-board manufacture.
At the moment East Sussex wood is taken from household waste sites to West Sussex for processing before being sent to other sites for recycling.
A report to the committee reveals KPS Composting Services has suffered a 40 per cent reduction in demand to treat green waste since the start of operations at an indoor composting facility at Whitesmith late last year.
“Consequently, the current proposal seeks to diversify the existing composting operation to also allow the management of waste wood, to assist the business in remaining viable. It is recognised that this site has represented an important green waste management facility in the county for a number of years,” the report states.
The recommendation for approval is subject to a number of conditions.
You can read the full report on the East Sussex County Council website.