Copenhagen: Swedish furniture giant Ikea is closing its only factory in the United States at the end of the year. One reason for the move is that the production costs and especially the price of raw materials in the United States are significantly higher than in Europe, an Ikea spokeswoman said on Tuesday, confirming media reports.
It would be better for Ikea to produce its products for the North American market in European factories and then to transport themacross the Atlantic, she said.
Three hundred jobs will be lost in the US at the turn of the year as a result. Ikea’s US factory is located in Danville, Virginia. Since 2008, the Swedish group has been producing wood products from its successful Kallax and Besta ranges, among others, at the plant. It is Ikea’s only manufacturing facility in North America. — dpa
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