Upcycling wood waste for a sustainable economy
Enterprise
Dijamanti Sh.P.K.
Presentation of the enterprise
Building on a 35-year family legacy and founded in 2019, Dijamanti Sh.P.K. is Kosovo’s only laminated wood panel producer and a key manufacturer of renewable wood pellets.
Amount of co-financing
EUR 150,000
- Kosovo
- 2025
- Ongoing
Challenge
Kosovo’s wood processing industry generates large amounts of waste, most of which ends up burned or dumped due to the absence of structured recycling systems. This results in environmental degradation and missed economic opportunities. At the same time, households face rising heating costs, while the country remains dependent on imported wood-based materials, including panels and pellets. There is a clear gap in the market for local, circular solutions that turn waste into value while reducing import dependency and environmental harm.
Innovative solution
Dijamanti addresses these challenges through a vertically integrated circular business model that transforms wood waste into high-demand products. The company produces laminated panels using 15–20% internal wood residues. It manufactures heating pellets from sawdust and wood offcuts – 90% of which come from its own operations. By connecting its production and distribution processes with a growing network of over 173 partners in the wood sector, the company ensures a reliable supply of waste materials and cost-effective logistics. The model reduces pollution, supports local supply chains, and offers affordable renewable energy and materials to both households and manufacturers.
Impact
- Production of 330 additional tons of renewable heating pellets
- Affordable renewable heating for 160 new households
- Additional 70 tonnes of wood waste reused
- Local manufacture of 830 m³ laminated panels for 330 clients
- Income increases for 45 new wood waste collectors and suppliers
- Creation of 10 new green jobs in wood processing
- Cleaner workplaces through new dust extraction system


Targeted Sustainable Development Goals
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Over 238 households access cleaner, low-cost pellet heating made from recycled wood waste.
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10 new green jobs are created, engaging youth, and 40 workers are trained in labour rights and OHS.
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The company recycles a total of over 650 tons of wood waste annually into energy and building materials.
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The project reduces CO₂ and air pollution by preventing open burning and using clean energy solutions.
News
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LuxAid Demonstration Fund
Dec. 2025Driving Change in Kosovo: How businesses are tackling city congestion and industrial waste
What if the greatest challenges to Kosovo’s future weren’t a shortage of ideas, but the struggle to turn them into reality? Across the country, a new wave of companies is turning real-world problems into scalable products – from easing urban congestion to cutting industrial waste. Among the initiatives supporting this… -
Nov. 2025How businesses from Kosovo are transforming education and manufacturing
In late 2024, Luxembourg’s Development Cooperation launched a new call for proposals under the LuxAid Challenge Fund, a programme designed to support innovative, locally driven solutions to social and economic challenges. Competition was intense: more than 80 applications poured in from across Kosovo, each with bold ideas to tackle the… -
LuxAid Challenge Fund LuxAid Demonstration Fund
Nov. 2025Eight bold innovations shaping Kosovo’s future
After months of mobilisation across a vibrant ecosystem and a rigorous selection process, eight groundbreaking projects led by Kosovo-based enterprises have been awarded support through the Luxembourg Challenge Fund (LCF) and the Luxembourg Demonstration Fund (LDF). Launched in late 2024 with a budget of more than EUR 1.5 million, this… -
Business Partnership Facility
Sep. 2025The BPF, a driver of sustainable business
The Luxembourg State supports the creation of innovative partnerships, inviting the private sector to invest in developing countries. Through the Business Partnership Facility (BPF), Luxembourgish or European companies join forces with foreign partners to generate positive societal impact. Discover in Paperjam the story of e-LMA and Swiss Premium, a win-win… -
Business Partnership Facility
Sep. 2025From Luxembourg to Kosovo: Building the finance of tomorrow
Read the interview of Jabir Chakib (CEO of e-LMA) and Ilir Ibrahimi (CEO of Swiss Premium) to have their insight on this BPF-backed project in Kosovo. -
Business Partnership Facility
Sep. 2025Launch of the 14th edition of the BPF: Boost your impactful projects in developing countries
Business growth and positive impact? Yes, it’s possible! Whatever your sector, the Business Partnership Facility (BPF) can help your enterprise expand internationally while contributing to a fairer, more inclusive and sustainable future. -
LuxAid Challenge Fund
Apr. 2025LuxAid Challenge Fund: 15 innovative entrepreneurs pitched their projects in Benin
The LuxAid Challenge Fund in Benin has reached a major milestone with the recent Pitch Days held in Cotonou… -
LuxAid Challenge Fund LuxAid Demonstration Fund
Apr. 2025Inspiring Pitch Days for LuxAid Demonstration Fund and LuxAid Challenge Fund in Kosovo
The call for proposals under the LCF and the LDF in Kosovo has reached an exciting milestone with the recent Pitch Days held in Pristina… -
LuxAid Demonstration Fund
Oct. 2025Boosting impact, building futures: Rwanda’s innovators backed by Luxembourg
On Thursday, 16 October 2025, Kigali came alive with the spirit of innovation for impact. The Embassy of Luxembourg hosted a high-level ceremony dedicated to the LuxAid Demonstration Fund (LDF), a flagship initiative of Luxembourg’s Development Cooperation, implemented by LuxDev, the Luxembourg Development Cooperation Agency.