Ikea Planning New Plant in Russia
The Swedish furniture giant Ikea is planning to set a new plant in Novgorod, Russia alongside a particleboard mill that it bought from Pfleiderer in January 2013. According to the Russian media sources an investment of about €50m, is to be made via Ikea Industry. Ikea Industry was restructured in the past two years and pools Ikea’s production activities. The new plant will primarily make kitchen cupboards and wardrobes.
The neighbouring particleboard mill will supply the melamine particleboard required as a raw material. This step is to improve the site’s added value. The furniture manufacturing facility is to employ approximately 250 workers. Ikea Industry put the number of people currently working at the particleboard mill at about 380. Ikea Industry said that a firm timetable had not yet been drawn up for building and commissioning the furniture plant, which will be part of Ikea Industry’s Flatline division.
