Abstract: A wood substitute material is formed by mixing a base polymer with wood fiber or wood flour together with a quantity of lignin and thereafter creating a molten material within a compounder and extruder. The molten material is extruded or injection molded to form the desired shape. Prior to extrusion or injection molding, a foaming agent is added to the molten mixture resulting in the creation of a variable density extruded or injection molded article. In the extrusion process, a conventional extrusion die is employed having a die passage which is significantly larger than the desired eventual size of the extruded article. The enlarged extrusion is thereafter cooled and reduced in sized through a series of vacuum sizers and a final water bath prior to cutting. The degree of foaming within the extruded article is controlled by the amount of foaming agent employed.