Ikea to Invest in Wood Processing Industry in Belarus

19.05.2011 09:54
Архив Редакция

The Lithuanian company Vakaru Medienos Grupe decided to invest €76 million in the wood processing complex in "Mogilev" free economic zone. The Lithuanian project was supported by the Dutch company Ikea, as well as the European Bank for Reconstruction and Development (EBRD), which loans €26 million for the project.

Ikea founder Ingvar Kamprad explained the decision to invest in Belarus’s new plant by the fact that the country has good wood supplies. He also noted that, since imports from Belarus to Russia are not charged, the company prices of furniture to Russia won’t grow, reports The Financial Times.

«The enterprise in Belarus will increase our production capacity and provide the Russian market with affordable furniture,» said Ingvar Kamprad.

Implementation of an investment forest cluster project will create about 900 new jobs in Mahiliou.

According to Ingvar Kamprad, EBRD requested to ensure compliance with high industry standards, as well as a code of environmental and social requirements during the project implementation.

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