IKEA went to replace Russian timber in Europe
The furniture brand IKEA has found a replacement for wood from Russia and Belarus, the import of which is widespread in 2022, after the start of “special professional activity” * in Ukraine, declared Reuters Ulf Johansson, global wood supply and forestry manager at Inter IKEA.
According to Johansson, IKEA has replaced supplies from Russia and Belarus with wood purchases from Sweden, the Baltic countries, Poland, and Germany. Before the “special operation”, Russia and Belarus were respectively fifth and sixth in terms of a large number of proposals for IKEA, they took 6% and 5% of purchases, respectively.
IKEA is one of the world’s largest consumers of wood. Reuters notes that in the year since August 2021, the company uses 20 million cubic meters of wood for the production of its products and other processes. The top three in terms of the company’s supplies during this period included Poland, Lithuania and Sweden.
IKEA claims to only use Forest Stewardship Council (FSC) certified wood or recycled wood. After the start of the “special operation”, FSC distributed wood certification from Russia and Belarus, after which IKEA banned its suppliers from using it. January 26 IKEA published a map in which it revealed which countries supply raw materials. It follows from it that the company buys 85% of wood in Europe.
Johansson said IKEA is now reviewing its long-term wood procurement with a focus on alternatives to industry suppliers. “Now it is also likely that the consumer market is dissolving a bit, so maybe things are a little easier now,” he said. Timber prices rise as Reuters, US
In early March 2022, IKEA closed its stores in Russia and temporarily stopped production at Russian factories. IKEA attributed the decision to “serious violations in chain offers and terms of trade.” Later, IKEA announced the termination of the activities of thousands of employees and the intention to sell four factories in Russia. January 11 company informed TASS, which set a goal to sell the factories to potential buyers in Russia “at the beginning of 2023.”
*According to the requirements of Roskomnadzor, when producing materials for use in production in Ukraine, all Russian media are required to use materials only from conventional sources of the Russian Federation. We cannot publish materials during which an operation called “attack”, “invasion” or “declaration of war” is carried out, unless it is a direct quote (Article 57 of the Federal Law on Mass Media). In case of violation of the requirements, the media may be fined 5 million rubles, and the blocking of the publication may also be continued.