Wood, an industry with a bright future

Wood, the epitome of all traditional building materials, is currently playing a key role in two major political challenges in Luxembourg: the development of a circular economy and the fight against the impact of climate change. 

Wood is one of Luxembourg's oldest and most natural resources. Forests are an exceptional asset with huge potential, only two-thirds of which is used: they represent a virtually unique model of sustainable harvesting at the intersection of environmental, economic and societal challenges.

Sustainable development is the keystone of this industry. This involves a value chain based on high quality regional products in a circular economy context, with local companies that are not afraid to embrace innovation. Indeed, innovation enables companies that are active in the sector to unlock the full potential of wood as a resource and to optimise its development and use, from the sustainable development of forests to short delivery routes, high-end products and ultimately waste recovery.

Every year, 750,000 m3 of wood is produced in Luxembourg's forests, of which 500,000 m3 is actually harvested.
90,000 hectares are covered by forests, more than a third of the national territory, with a very high proportion of broadleaved trees (64% of the total surface area) compared to coniferous trees (36%).

A dynamic ecosystem

In Luxembourg, the wood industry represents more than 1,500 SMEs working directly or indirectly in the nine links that make up the value chain. More than three-quarters of these listed companies have fewer than 50 employees, and 60% have fewer than ten. Since most of the companies are owner-run, they have a direct interest in innovative products and services, making a significant contribution to innovation and digitalisation in the wood industry.

The sector is also continuing to focus on bespoke solutions, for example in skilled trades and the supply industry, laying the foundations for a more diverse commercial base.

Around 60 companies come under the category of "sustainable development facilitators", working in areas such as smart buildings, energy efficiency and the circular economy. These include regional timber construction companies and manufacturers of wood cladding and specialised products based on wood systems.

Did you know?

The use of wood as a resource in Luxembourg dates back to before the country's independence and has long been a mainstay of the region's economy. The country was known as the "Département des forêts" (Department of Forests) between 1795 and 1814, and the Luxembourg Nature and Forest Agency (ANF), established in 1840, is one of Luxembourg's longest-standing national administrations.

The Luxembourg Wood Cluster: your partner

The Luxembourg Wood Cluster was set up in 2016 to serve this ecosystem and provide a platform where all the stakeholders in the wood industry can exchange ideas and information. It is a forum for innovative private and public regional players, both companies and research centres, giving those in the industry in Luxembourg and the Greater Region the opportunity to share their experience.

The Cluster is also working on broad strategies to foster innovation for companies and to promote and showcase regional and circular products and alternative solutions for the technical implementation and financial viability of carbon-neutral building.

It offers its members a wide variety of services, including:

  • Organising conferences and themed visits;
  • Leading working groups;
  • Research and analysis for innovative projects and the launch of clusters of innovation in Luxembourg and the Greater Region;
  • Technology watch at national and international level;
  • Supporting SMEs and start-ups in developing products and services.

Given the proximity of member companies, the Cluster naturally fosters collaboration and the implementation of partnerships and other collective projects at national and European level.