Ikea Industry withdraws from US production

24.07.2019 − 

Despite still pursuing expansion plans in North American retail business, Ikea Group Inter Ikea is to close down the plant in Danville, Virginia, in December 2019 and thus withdraw from production business in the USA. Production currently carried out at this location is to be transferred to the Ikea Industry locations in Paços de Ferreira (Portugal) as well as Zbaszynek and Lubawa (both Poland). According to Ikea Industry, all of these locations have sufficient capacity reserves for this.

The Danville plant, which was commissioned in 2008, covers a production space of some 930,000sqft or 86,000m² and, with 300 employees, mainly produces the Kallax (shelf systems) and Bestå (storage combinations) product lines for US and Canadian Ikea home furnishing stores. Following the closure, which is scheduled for the end of the year, Ikea Industry plans to sell the remaining goods and disassemble production equipment by spring 2020. The equipment is then to be sold or transferred to other Ikea Industry locations. The premises are also to be sold; discussions with Danville’s department for economic development have already commenced.

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