IKEA announced that it will close its furniture factory in the United States at the end of 2019, cutting around 300 jobs, as it will be more cost-effective to manufacture in Europe and import them to different countries.
The global big-box furniture destination, popular for it’s Swedish Meatballs and inexplicable assembly instructions, claims costs of raw materials were very high compared to plants in Europe, means prices at the plant in South Virginia Town of Danville were “significantly higher”.
The Site Manager of IKEA, Bert Eades said in a statement that “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.”
The US-based furniture factory of IKEA was opened in 2008 to manufacture wooden shelves and storage units for Canadian and the United States is likely to close in December.
Mr. Eades said, “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.”
IKEA has production units at 24 sites in nine distinct countries, with over 20000 workers, claims it will work with labor representatives and the US agencies to offer job search assistance.