Sweden’s Ikea group to invest 135 million euros in 3 factories in Portugal

25 October 2006

Lisbon, Portugal, 25 Oct – Sweden’s Ikea group plans to invest 135 million euros in building three factories in Paços de Ferreira, northern Portugal, the director responsible for the Group’s expansion in Portugal said Tuesday in Lisbon.

António Machado , who was speaking at the presentation of the Group’s investment plan for Portugal, said that when the factories began working at “cruising speed” they would produce goods to the value of 180 million euros, with 90 percent of production for export.

The first of the three units, to be built on a 250,000 square meter area and due to open at the end of 2007, will manufacture light filling materials that would make products lighter and cheaper.

The second factory is expected to be ready in 2008 to produce kitchen doors and the third is projected to begin operating in 2010 and will supply laminate furniture.

The raw materials for the factories will be 60 percent of Portuguese origin, both in terms of wood and wood derivatives, Machado said.

The group plans to invest a further 660 million euros in Portugal by 2015, to have seven stores, including the current Lisbon store and the future store located in Matosinhos, and factories creating 2,500 new jobs.

Speaking about the choice of Paços de Ferreira for the location of the factories, the director general of Ikea Iberia, André de Wit said that it was the best location in terms of infrastructure and available area, access to a highway and to Spain, power supply and available workforce. (macauhub)