SOURCE: IKEA USA

IKEA USA

March 25, 2014 08:00 ET

IKEA US Growth Plans Create Opportunity for US Suppliers

IKEA Awards Current Supplier Sauder Woodworking Co. a Five Year Contract Creating at Least 150 New Jobs

CONSHOHOCKEN, PA--(Marketwired - March 25, 2014) - IKEA US announced today that it has recently awarded its current supplier, Sauder Woodworking Co. of Archbold, Ohio, a 5 year contract. The partnership will create at least 150 new jobs and involve an equipment investment of over $13 million by Sauder.

Sauder Woodworking Co., North America's leading manufacturer of ready-to-assemble (RTA) furniture, has been a supplier to IKEA US since 2007. Currently Sauder manufactures kitchen cabinets for IKEA US. Under the terms of the new contract, Sauder will be producing four furniture families for IKEA US including bedroom furniture, office, entertainment and children's storage furniture.

"We have been successfully supplying IKEA its AKURUM kitchen cabinets for the last seven years, so when IKEA was looking for North American partners to help them sustainably supply their North American stores with quality furniture, they looked to Sauder," Kevin Sauder, President/CEO of Sauder, said. "Our teams have worked together closely to provide a great value to the consumer."

"IKEA strives for long-term partnerships with suppliers to secure efficient production and growth. The relationship between IKEA US and Sauder Woodworking is a good example of that," said Rob Olson, Chief Financial Officer, IKEA US. "With our planned growth in the US, we are looking to expand our manufacturing base here, so that we can deliver our products economically and sustainably."

The expansion of the IKEA and Sauder relationship is a business decision that also has environmental benefits. By increasing US sourcing, IKEA is able to shorten transport distance between the manufacturing site and stores, thereby reducing carbon emissions. 

IKEA is planning to grow its US presence and will open three new stores in 2014 and 2015; Miami, Florida, Merriam, Kansas and St. Louis, Missouri. In 2013, 25 US suppliers, including the IKEA Industry factory in Danville, Virginia, supplied approximately 19% of the cubic meter volume sold in IKEA US stores. Supply from North America (US, Canada and Mexico) equals approximately 31% of the cubic meter volume sold in US stores. Products currently produced in the United States include kitchen cabinets, mattresses, sofas, entertainment furniture, shelving units and appliances.

To learn more about the IKEA Sauder partnership, see the video at https://www.youtube.com/watch?v=30-mrpdDaQg 

About IKEA

The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at low prices so the majority of people can afford them. There are currently more than 350 IKEA stores in 44 countries, including 38 in the US. In FY 13, the IKEA Group had 135,000 co-workers, 684 million visitors to the stores and 1.3 billion visitors to IKEA.com. IKEA incorporates sustainability into day-to-day business and supports initiatives that benefit children and the environment. For more information, see IKEA-USA.com, facebook.com/IKEAUSA, @IKEAUSANews, @DesignByIKEA, http://pinterest.com/IKEAUSA/, www.youtube.com/IKEAUSAwww.theshare-space.com, www.theshare-space.com/en/Blog

About Sauder

Headquartered in Archbold, Ohio, Sauder Woodworking Co. is the nation's sixth largest residential furniture manufacturer. Sauder subsidiaries include Progressive Furniture Inc., a designer and importer of traditional solid wood, veneered and laminate furniture; and Sauder Manufacturing Company, a leader in church, educational, and health care seating. For more information about Sauder, visit www.sauder.com

Contact Information

  • Contact information

    IKEA Contact: Mona Astra Liss ~ IKEA US Corporate PR Director

    Mona.Liss@IKEA.com ~ 610.834.0180, ext. 5852

    Sauder Contact: Kevin J. Sauder, President, CEO ~ Sauder Woodworking Co./

    KSauder@sauder.com ~ 419.446.3137