site.btaIKEA Plans to Increase Supplies from Bulgaria, Build Its Own Manufacturing Facilities in this Country

IKEA Plans to Increase Supplies from Bulgaria, Build Its Own Manufacturing Facilities in this Country

Almhult, Sweden, August 20 (BTA) - At a meeting at IKEA's Swedish headquarters in Almhult, IKEA Systems B.V. founder and owner Ingvar Kamprad told visiting Bulgarian Economy Minister Bozhidar Loukarski that his company is planning to increase its supplies from Bulgaria and, to this end, will be seeking new partners in the country, Loukarski Ministry said in a press release on Thursday.

IKEA intends to double its global sales by 2020, which requires exploring new supply opportunities, and Bulgaria is central to the new strategy.

"Over the years, I managed to find a lot of good suppliers and to make a lot of good friends in Bulgaria. Bulgaria has a huge potential, and now is the time to build a partnership that will enable us to grow together," Kamprad said, adding that his company sees Bulgaria as a strategic partner in the long term. Loukarski stressed that his visit to IKEA's headquarters is a sign of support from the entire Bulgarian Government.

Increasing orders to existing partners in Bulgaria and finding new suppliers are the first steps in the company's plans for Bulgaria. In early May, Kamprad personally visited a number of enterprises in Bulgaria to assess on site their capacity to get more active involved in the company's global supply chains. Particular products were identified during the visit for which Bulgarian companies can have the potential to compete with other IKEA international suppliers, and the first samples have already reached the company's HQ for quality control. Some of the companies have already received orders in various segments of the IKEA range: textiles, wood and aluminum furniture, mattresses and upholstered furniture, as well as glassware. There is also interest in the manufacture of ceramic sanitary ware for bathrooms and kitchens and chinaware, for which the company is still seeking suitable suppliers in Bulgaria.

"Our project for expanding partnership with Bulgarian companies has already got the green light, and we are working actively on it," said IKEA Global Purchase Development Manager Henrik Elm. The company will prioritize its efforts in Bulgaria, and the first stage of the project is expected to be completed by February 2017.

At the meeting, Loukarski said that Bulgaria welcomes the opportunity to host an IKEA logistics centre and own manufacturing facilities and the Bulgarian Government will provide full support to this end. Bulgarian Small and Medium Enterprises Promotion Agency Deputy Executive Director Nikola Stoyanov presented the specific incentives and opportunities that Bulgaria can offer IKEA under the Investment Promotion Act and through the industrial zones managed by the National Company Industrial Zones under the Ministry of Economy.