Ikea buys 33,600 hectares of wood in Romania

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Ikea bought 33,600 hectares of wood in Romania, being the first such acquisition in the world of the Swedish furniture retailer. “Ikea Group decided to invest in wood operations. This acquisition enables the access to the timber working material (…) By this acquisition Romania becomes the first country where Ikea Group will manage its own wood operations. We pledged to be a first example of sustainable management of the woods,” said Frederik de Jong, Chairman of the Board Ikea Romania.

The property that Ikea bought is located in central and northeastern Romania, with a small part in the northwestern part of the country.

Local media reported that Ikea bought the forests from Greengold Swedish, run by the former partners of Harvard University in Romania. Harvard University gave up part of the forests owned in Romania to Greengold in January, amid a huge corruption scandal related to overcharged sale prices. According to Digi 24, by this acquisition, the Ikea will hold about 0.5 percent of the total area fo forests in Romania.

Ikea also has a direct relation with the local furniture suppliers. According to Violeta Nenita, purchasing operations manager South East Europe Ikea Purchasing, Ikea has partnerships with 20 Romanian suppliers which mainly produce couches, armchairs, tables, chairs, products for children and ceramics.

“More than 14,000 persons are working for our Romanian suppliers, while the value of the products bought by Ikea Group in Romania was up to over EUR 400 million per year,” Ikea official said.

IKEA has only one store in Romania, but one month ago, they decided the site where to build a second one. The plot has an area of around 13.7 hectares and is located in Bucharest, District 3, Pallady Blvd., No. 57.

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