US News Ikea is closing its only US factory and moving production to Europe

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London (CNN Business) - Ikea is shutting down its only furniture factory in the United States.

The Swedish company will end production this December at its plant in Danville, Virginia. Operations will move to Europe, where the company says it can cut costs.

"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," site manager Bert Eades said in a statement.

The Danville facility, which opened in 2008, employs 300 workers. Wooden products including shelves and storage units are made at the plant.

In justifying its decision, Ikea pointed to raw material prices, which it said are higher in the United States than Europe. Ikea operates plants in European countries including Poland, Russia and Sweden.

Senator Tim Kaine, a Democrat from Virginia, tweeted in 2018 that workers at the Danville plant were worried about how tariffs would affect costs. Kaine said the plant imports many raw materials.


Read more here. (CNN)
 
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