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Business news, 23.04.2002 15:54

IKEA to increase local purchases in Russia to $400 million

produced by IKEA The agreement on investments into the furniture and wood-processing industry was signed during a summit of President Vladimir Putin and German Chancellor Gerhard Schroeder in Weimar, Germany, on Wednesday. The signatories were IKEA Germany GmbH&Co/KG, the mother company of IKEA Russia, and the Industry, Science and Technology Ministry. The current value of domestic production volume sold in the two Russian IKEA stores is 10-12 per cent. The plan to increase domestic purchase up to 30 per cent gives the Russian furniture industry a good opportunity to show its potential. The purchase of wood products and furniture together with home furnishing products, including plastics and textiles, will during the next five years total $1 billion. IKEA also plans to invest $140 million in Russian factories and plants over this period.

News source: Swedish Trade Council

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