Swedwood Plans to Build Two More Furniture Factories in Russian Regions - 25 March, 2003

Construction of the Swedwood-Tikhvin furniture factory (Leningrad Region) is expected to enter the second stage some time in 2003. This was announced to journalists by Director of IKEA in Russia Lennart Dahlgren. He did not mention the amount of investment although earlier the director of the Swedwood-Tikhvin factory valued the second stage of the project at USD 10 million. Mr Dahlgren said that the factory would use 250 thousand cubic metres of wood a year after the second stage of construction has begun. The second stage will include the construction of the gluing workshop and installation of equipment for using wood from deciduous trees such as aspen and birch. The project is currently being considered by the Duma of the Leningrad Region. The management of Swedwood is also considering the construction of two more furniture factories in other regions of Russia.

The Swedwood-Tikhvin factory for furniture parts opened in July 2002. USD 15 million have been invested in the factory and the factory currently uses 150 thousand cubic metres of wood a year. Swedwood registered the company Swedwood-Tikhvin at the end of 2002 and immediately signed a contract with the government of the Leningrad Region. The furniture parts produced at the factory are exported to IKEA factories in Sweden and Central Europe.

The international industrial group Swedwood was founded in 1991 and is a daughter company of IKEA. Swedwood consists of 36 enterprises in 12 countries.