Shaykh Ibn Uthaymeen was asked the following question:

Question: There are machines that shred papers. Is it allowed to shred a mushaf using it?

Answer:

If the letters do not remain after shredding, the that is allowed.

[Kanz uth-Thameen Fi Su’alaat Ibn Saneed no. 773 pg. 177]

Translated by

Faisal Ibn Abdul Qaadir Ibn Hassan
Abu Sulaymaan