ARCHBOLD, Ohio — Sauder Woodworking Co., which has been making products for Ikea’s American subsidiary since 2007, has been awarded a new five-year supplier contract by the Swedish home furnishings retailer that could create between 150 to 250 new jobs at the Fulton County ready-to-assemble furniture manufacturer.
Ikea U.S. said today that Sauder Woodworking will supply it with four lines of furniture under the new contract. The lines are bedroom, office, entertainment, and children’s storage furniture.
Kevin Sauder, president and chief executive officer of Archbold-based Sauder Woodworking, said the new contract will mean an investment of more than $13 million in new equipment for the company.
“We have been successfully supplying IKEA its Akurum kitchen cabinets for the last seven years, so when IKEA was looking for North American partners to help them sustainably supply their North American stores with quality furniture, they looked to Sauder,” he said. “Our teams have worked together closely to provide a great value to the consumer.”
Rob Olson, chief financial officer for Ikea U.S., said, ““Ikea strives for long-term partnerships with suppliers to secure efficient production and growth. The relationship between Ikea U.S. and Sauder Woodworking is a good example of that."
“With our planned growth in the U.S., we are looking to expand our manufacturing base here, so that we can deliver our products economically and sustainably,” Mr. Olson added.
Ikea is planning to expand its U.S. presence and has announced it will open three new stores in 2014 and 2015 in Miami, Merriam, Kan., and St. Louis.
In 2013, approximately 25 U.S.-based suppliers, including the Ikea Industry factory in Danville, Va., supplied approximately 19 percent of the volume sold in Ikea’s American stores.
Products currently produced in the United States include kitchen cabinets, mattresses, sofas, entertainment furniture, shelving units, and appliances, Ikea said.
In 2007 Sauder Woodworking Co. began manufacturing frames and shelves for kitchen cabinetry sold by Ikea. The deal was struck after Sauder conducted seven months of negotiations with Ikea on specifications for the cabinetry components, which before 2007 were made in Eastern Europe.
At the time of the 2007 contract, Mr. Sauder said Ikea chose Sauder Woodworking because it had a combination of price, quality, and manufacturing capacity that the Swedish retailer needed.
IKEA operates over 350 IKEA stores in 44 countries, including 38 in the United States. The closest store to Toledo is in Canton, Mich., west of Detroit.
Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.
First Published March 25, 2014, 3:22 p.m.
