IKEA Industry announced it will discontinue production at its Danville, Va. location in December. The plant, which has been in operation since 2008 and employs 300, produces wood-based furniture for its retail stores in the U.S. and Canada.
Production will be moving to existing manufacturing units in Europe to meet the demand for affordable furniture products in North America.
“This was an extremely difficult decision to make. 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 for the long-term,” says Bert Eades, Site Manager, IKEA Industry Danville.
The plant mainly produces KALLAX shelving units and BESTÅ living room storage units for IKEA U.S. and Canada.
IKEA states the cost structure for production in Danville is too high, especially when it comes to raw material, resulting in pricing that is significantly higher than other IKEA Industry units making the same products in Europe.
Including dismantling, IKEA Industry will be present in Danville until spring 2020.