IKEA to close furniture factory in US and shift production to Europe

July 16, 2019

IKEA announced that it will be closing its only U.S. factory by the end of 2019 and cutting 300 jobs, as they will move production to Europe where operations will be more cost effective.

The company said that raw material costs in the U.S. were “significantly higher” compared to Europe.

IKEA’s sit manager Bert Eades said in a statement, “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.”

“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 statement added.

The company has said that it will work with U.S. agencies and labor representatives to help its workers find new jobs.

– MK. II