DIYWEEK.net

 

Ikea closes production factory in US

Published: 15 July 2019 - Kiran Grewal
 

Ikea Industry has announced that it will discontinue production at its Danville, VA location in December 2019. The plant, which has been operating since 2008 and currently employs 300 co-workers, produces wood-based furniture for Ikea retail stores in the U.S. and Canada. The company said production will move to existing Ikea Industry manufacturing units in Europe.

“This was an extremely difficult decision to receive. We made every effort to improve and maintain the competitiveness of this plant, but unfortunately the right cost conditions are not in place to continue production in Danville, VA for the long-term,” said Bert Eades, site manager, Ikea Industry Danville. “We will do everything we can in the coming months to support our co-workers through this change as they look for new jobs and training opportunities.”

The Ikea Industry plant in Danville was established 11 years ago to supply the market for functional and affordable wood-based products. The plant mainly produces KALLAX shelving units and BESTÅ living room storage units for IKEA U.S. and Canada.

Despite many efforts to improve, the cost structure for production in Danville is said to be too high, especially when it comes to raw material, resulting in pricing that is significantly higher than other Ikea Industry units making the same products in Europe. Following a very thorough analysis, it was concluded that conditions are not in place to continue and develop production in Danville.

The production will keep running until December 2019 to allow Ikea Industry co-workers time to find new employment and training opportunities. Including dismantling, Ikea Industry will be present in Danville until spring 2020.

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?

RANGE REVIEW: Autumn/Winter Prep


As we near the end of another scorching summer season, which category do you expect to be the biggest seller in the build up to autumn and winter?







Latest reader comments

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...

re: Quick and easy wood treatment oil from Frogsuit

Helen
hi, I have some brand new teak garden furniture would the clear be suitable to keep the new look of the wood....

re: Hardware store wins fight against music licence body

Georgia
We are a small business of 5 people who watch the news for 30 minutes a day on lunch ( 4 days a week) and have been sent a bill for £900!!!?...

re: Customers complain B&Q paint is wrecking their cars

Rosie
Susan did you get an update, we have just experienced this, husbands car is completly ruined. BNQ have washed their hands of us. 40 pounds ...

Most read stories

https://www.diyweek.net/ikea-closes-production-factory-in-us