The year 2024 was a transformative period for HJT-Holz, marked by significant investments and renewal. The company launched a €4 million investment program that increased production capacity by 65,000 cubic meters per year while significantly reducing production costs per cubic meter.

1. Key Investments in Efficiency

A central aspect of the investment program was the design and implementation of new thermal modification facilities, which HJT-Holz developed entirely in-house. This approach ensured cost-efficiency while tailoring the solutions to meet the company’s specific production and quality requirements. Additionally, the scalability of the investment enables flexible capacity expansion, adding 20,000 cubic meters for every additional €1 million investment.

2. Strategic Timing During a Downturn

The investments were deliberately executed during an economic downturn when costs were lower. “The timing of this investment is critical,” notes the CEO. “If this had been undertaken during an economic upswing, production interruptions would have resulted in significant losses. Now, we are fully prepared to capitalize on the next economic growth cycle.”

3. Challenges Turned Into Opportunities

One of the year’s greatest challenges was the destruction of an older production facility due to a fire. This event prompted the company to reassess its production capacity and provided an opportunity to build a larger, more energy-efficient facility.

4. Global Market Expansion

In 2024, HJT-Holz achieved notable growth in markets outside Europe. The company strengthened its presence in North America and the Middle East, where demand for thermally modified wood continues to rise.

Thermally modified wood is a niche industry, which increases the demands for quality and precision. “We must always deliver the best possible quality—this applies equally to us and our competitors,” the CEO states.

The Thermowood Association plays a vital role in supporting the industry’s development and ensuring thermally modified wood is internationally recognized for its superior quality. “Collaboration with the association helps maintain high standards and enhances the global visibility of the industry,” the CEO adds.

5. Future Prospects

The market for thermally modified wood is experiencing strong growth due to various global factors driving demand. The closure of Russian timber exports to Europe has reduced the availability of Siberian larch, redirecting demand to alternative materials such as thermally modified wood. Russia’s ban on raw wood exports has disrupted market balance, particularly in Europe, creating additional pressure on local producers

The European Union’s Green Transition goals have accelerated the use of environmentally friendly and low-carbon building materials. Thermally modified wood meets these requirements by enhancing the durability of timber without chemical treatments, supporting carbon-neutral construction. Stricter building regulations and the growing popularity of timber construction are also increasing the use of thermally modified wood in residential and public buildings, as well as outdoor structures.

Additionally, the post-war reconstruction in Ukraine is expected to significantly boost demand for wood materials. Ukraine’s extensive need for infrastructure projects and rebuilding residential areas will create new markets, particularly for European wood products. With Russia and Belarus absent from supply chains, European producers are well-positioned to fill this gap.