IKEA deal with Sauder to create jobs

IKEA plans to open three new stores in 2014 and 2015 in Florida, Kansas, and Missouri.

ARCHBOLD - Sauder Woodworking Co. of Archbold and IKEA US announced a new partnership Tuesday, a 5-year contract that's expected to bring job growth and equipment investments.

IKEA formed the partnership with its supplier, Sauder Woodworking Co., a manufacturer of ready-to-assemble furniture. The partnership is expected to create at least 150 jobs, which also includes a $13 million equipment investment by Sauder.

â??IKEA strives for long-term partnerships with suppliers to secure efficient production and growth. The relationship between IKEA US and Sauder Woodworking is a good example of that,â?? said Rob Olson, Chief Financial Officer, IKEA US. â??With our planned growth in the US, we are looking to expand our manufacturing base here, so that we can deliver our products economically and sustainably.â??

Sauder currently manufactures kitchen cabinets for IKEA US since 2007. Under the terms of the new contract, it will expand its services, producing bedroom furniture, office, entertainment and childrenâ??s storage furniture.

â??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,â?? Kevin Sauder, President/CEO of Sauder, said. â??Our teams have worked together closely to provide a great value to the consumer.â??

IKEA plans to open three new stores in 2014 and 2015 in Miami, Fla., Merriam, Kansas and St. Louis, Mo.