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Denmark to Sweden
Danish furniture producer Ilva A/S is to challenge the dominance of Swedish Ikea in
Sweden. Ilva is to set up a store in Southern Sweden somewhere between
Lutz on Expansion Course
With effect from 1 July 2002, the insolvent furniture chain
Ikea Store in every City
Swedish furniture chain Ikea, is planning the construction of a further 13 stores in Russia, one in every city with over a million inhabitants. The company currently has seven opened or planned in St Petersburg and Moscow. The cities in Ikea's sights include: Nizjnij Novgorod, Jekaterinburg, Samara, Novosibirsk, Krasnojarsk, Saratov, Omsk, Tjeljabinsk, Perm, Kazan, Ufa, Rostov-na-Donu and Volgograd. Ikea also plans to increase the proportion of furniture manufactured in Russia from a current 10% to a proposed 30%.
Fameg Cuts Labour Force
Fameg, the Polish producer of bent-wood furniture plans to make 385 workers redundant due to financial difficulties in the company. The president of the company said, that problems are linked mainly to the high rate of the Polish currency and lower orders from the main client, Ikea. NFI Progress, the owner of 33% stake in Fameg, looks for an investor for the furniture maker.
The European Federation of the Parquet Industry (FEP) reports that timber floor sales have decreased by 1.2% to below 80 million square metres in 2001 and the production has fallen by 1.3% to 62.1 million square metres. Output from new members of the organisation - Hungary, Poland and Romania - brought total production to 75.6 million square metres and consumption in non-FEP member countries in the EU and European Free Trade Association pushed total sales to 95 million square metres. The European wide annual growth in consumption was 4.4%, and timber had a 5.1% share of the total floorcoverings market. The organisation expects the demand to remain at the same level in 2002.
80 Percent Exported
According to the Romanian Association of Furniture Manufacturers (APMR) the country's furniture exports in 2001 totalled US$ 500mil, accounting for 78% of total furniture production, while export growth of around 5% is expected for 2002. The domestic furniture market, meanwhile, was worth US$ 224mil in 2001, slightly down on the 2000 level of US$ 235mil, with imports accounting for about a third of the market. Imports are forecast to drop in the future as local manufacturers improve quality and variety, while overall production is expected to increase by around 75% by 2010, by which time exports will be worth US$ 800mil. There are currently 2,900 furniture factories in Romania but this is expected to decrease in the future as a result of consolidation in the industry.
Plywood and MDF in the UK
For more information on the trends in the UK market please see http://www.ttjonline.com/
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