The geography and climate of this area are favourable for exploitation of wood and wood industry. This sector also has a good-quality workforce whose results have been recognised internationally.
An example of successful cooperation in the wood processing sector are the activities of the Lignacon company from Teslić that produces chairs for the Swedish Ikea. Forests are the greatest resource of Teslić, and even though jurisdiction over their exploitation resides with the entity, the Teslić municipality guarantees priority of supply to the local wood industry.
Wood technicians are the most numerous among secondary education certificate holders. The four larger wood processing plants and a number of smaller sawmills have a total of 25 million Euros in annual revenues and employ a total of 800 workers. The main products of the Teslić wood industry are sawn timber, elements for the furniture industry, solid-wood boards and other similar intermediate products. Final products industry is, therefore, a segment with great growth potential. The final products industry is also a sector for which the municipality provides special advantages in line with the 2010-2015 Development Strategy of the Teslić Municipality.
The global success of companies for manual production of high quality solid-wood furniture such as Nord Ent and Artisan that run their businesses in Tešanj is the best example of the potentials in the wood industry in this area, rich not only in raw material, but in highly competent professionals. This company has its products in the most prestigious salons from New York to Seoul. There is a number of other companies from Tešanj that produce high quality final products and that can serve as an example of the right path of development for the whole of the BiH economy. The Tešanj municipality also has significant wooded areas: 30.3 percent of the total area of Tešanj is beech forest, pure pine/spruce forest, and mixed fir, spruce, beech, oak and sessile oak forest.
Forests are also the most significant and dominant resource in Žepče given that 62 % of the territory is covered in oak, hornbeam, beech, fir and pine forests. In Žepče, there are currently about 30 micro and SME firms with some 500 employees that are engaged in exploitation of forest resources, production of sawn timber, as well as intermediate and final products.
Among the most successful enterprises in Žepče is Prograd Ltd. founded in 1995 that has been producing top-quality wood joinery for a number of years as confirmed by quality certificates from renowned European institutes, including TUV NORD Group and the Italian Certification Institute CSI S.p.A. The Nansi company from Žepče is a leader in wood processing in BiH, and has successfully completed two investments that will contribute to increasing production and strengthening the competitiveness of this company in foreign markets.
The investments include a newly constructed drier facility of 360 cubic meters and a water reservoir with pumps for the hydrant network of 150 cubic meters capacity. Preparations for a third capital investment project are under way and will entail the construction of an office building to house the company showroom and management offices. Most of the companies produce finished products that are then placed mostly on the EU market, but also on the American and Asian markets. The Jasmin M company from Žepče has become a representative of the renowned German company HSM, and will sell quality forest skidders through its distribution network. Today, HSM is a name associated with excellent quality machines and innovations, but also with first-class service and spare parts for forestry machinery.