ELKHART, IN -- VIM Recycling has agreed to remove engineered wood waste from particleboard, plywood and other composite panels from its waste stream.

The company specializes in recycling wood waste into mulch and animal bedding.

According to the Elkhart Truth, the accord was pushed by the Indiana Department of Environmental Management. The newspaper said the agreement results from a lawsuit filed by IDEM and the Indiana attorney general's office last year. The lawsuit alleged that composite wood panel waste that includes formaldehyde resins constituted environmental and health risks.