Bhutan and Finland Unite to Pioneer Global Timber Innovation with the Finnish Thermo Mechanical Timber Modification Technology

Thimphu, Bhutan & Kuopio, Finland — 28.11.2025

Druk Holding and Investments Limited (DHI), the commercial arm of the Royal Government of Bhutan, and Avant Wood Oy (AW), a Finnish leader in timber modification technology, have signed a Letter of Intent to accelerate sustainable timber innovation and industrial development in Bhutan.

Building on their partnership since December 2023, the two companies will establish a Centre of Excellence in Timber Innovation in Bhutan, leveraging Avant Wood’s proprietary Thermo Mechanical Timber Modification (TMTM) technology. This initiative supports Bhutan’s green economy and climate-smart development goals while introducing Finland’s advanced timber processing expertise to South-East Asia.

Scope and Objectives

• Install Bhutan’s first commercial TMTM unit before H1/2026, enabling industrial-scale production.
• Create a Centre of Excellence for timber innovation and skills development.
• Develop high-value wood products for domestic and export markets.
• Advance R&D across the entire forestry value chain, from plantations to finished products, in collaboration with Finnish companies.

Leadership Perspectives

“This collaboration represents a milestone in Bhutan’s sustainable industrial development,” said Ujjwal Deep Dahal, CEO of DHI.

“We are proud to bring world-class Finnish timber technology to Bhutan and co-develop wood innovations for global markets based on TMTM-technology. Our joint projects and equipment deliveries represent investments worth tens of millions of euros.", adds Pekka Ritvanen, Chairman of the Board of Avant Wood. 

Market Context: Bhutan’s Untapped Timber Potential

Metric	Value
Forest Coverage	70% of Bhutan’s area, 2.68 million hectares
Sustainable Timber Potential	1.2 million m³ annually
Current Utilization	Only 3% harvested due to strict conservation laws
Trade Balance	Imports $48M vs Exports $9M

Strategic Alignment

The partnership supports Bhutan’s aim to advance and invest in sustainable building materials like mass timber and bamboo, to enhance construction at home and abroad. Avant Wood’s TMTM technology will help drive carbon-negative building methods, hands-on training, and manufacturing geared for export.