IKEA Industry announced it will discontinue production at its Danville, Va. location in December. The plant, which has been in operation since 2008 and employs 300, produces wood-based furniture for its retail stores in the U.S. and Canada. Production will be moving to existing manufacturing units in Europe to meet the demand for affordable furniture products in North America.
The company states the cost structure for production in Danville is too high, especially when it comes to raw material, resulting in pricing that is significantly higher than other IKEA Industry units making the same products in Europe. Including dismantling, IKEA Industry will be present in Danville until spring 2020.