IKEA to Open Its First U.S Manufacturing Facility

Will open on May 21 in Danville, Va.

Swedwood, the industrial group within IKEA, announced on April 30 that its Danville, Va. manufacturing facility will open officially on May 21, 2008. A formal ceremony will include remarks by Virginia Gov. Timothy M. Kaine.

The 930,000 square-foot Swedwood factory was built on 209 acres in Cane Creek Centre, a joint industrial park for the City of Danville and Pittsylvania County. The factory will be the Swedish company's first furniture production location in the U.S., and will produce a variety of wood-based IKEA products.

"Now our primary objective is to complete appropriate operational training for 175 coworkers as well as to ensure a seamless production and packaging process," said Bengt Danielsson, North American president of Swedwood.

Founded in 1991 by IKEA as a subsidiary to safeguard itself against the loss of vital suppliers in Europe, Swedwood is an industrial group of companies whose primary function is to manufacture and distribute furniture. Originally tasked to participate, when necessary, in the privatization of IKEA suppliers, Swedwood has evolved into an IKEA supplier with advanced production facilities of its own, including more than 36 production units in nine countries, and a staff of more than 13,000. (In addition to Swedwood, there are 1,300 other suppliers in 54 countries to IKEA globally.)

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