The title of the paper is Analysis of the wood industry and an example of the establishment of a wood processing plant. The paper consists of two parts, general and practical. The first part of the paper deals with the analysis of the Slovenian wood processing industry and with the way we manage state forests. The practical part relates to the concrete case of the establishment of a wood processing plant. At the beginning, I find that forests are an important part of the ecosystem and that they offer a living space for animals and plants, as well as space for people to relax. Hereinafter, I find that Slovenia is overlapped by forests by almost 60%, which places us in third place in the European Union. We cut less wood than it is possible and 74% of the forests are privately owned, while the rest is owned by the state or the municipalities. I find that Slovenia is characterized by a small ownership stake in forests, which is a problem in the efficient management of forests. We see that there has been a decline in the number of employees in the wood industry and that many companies in this industry have collapsed. The export of logs is too high and we are missing links in the chain, which would provide semi-products for domestic manufacturers of finished products. All of this is reflected in the lower added value per employee, plus the added value on wood is created abroad. A common point and the reason for these problems is insufficient investment in the technological development of the industry. I find that due to all this, a next paradox occurs: we export raw logs abroad, and then we import products made from this same wood for a higher price back to our homeland. The arrival of foreign capital in this industry is indicated, with different opinions being expressed whether this will be good for the Slovenian economy in the long run. The forests owned by the Republic of Slovenia are managed by the Slovenski državni gozdovi, d. o. o. (Slovenian National Forests, Ltd.), which is currently showing positive business results, but problems remain (disparity in the question of establishing wood processing centres, company policies). In the practical part, I find that there are sufficient raw materials in Slovenia for the new wood processing plant. The highest redemption price is achieved by logs of oak. I present a concrete balance sheet of the new plant, which could be called Slovenska žaga, d. o. o.; it would primarily function as a sawmill. I find that this plant is a realistic option, but further concrete steps are required together with additional market research and the acquisition of customers. However, it is highly suggested for this plant to produce semi-products for end-product manufacturers in the wooden house industry. This is confirmed by our visit to the wood processing company and by the questionnaire sent to the company that produces wooden houses. I also find that there is a possibility of obtaining (non-refundable) funds for the new plant.