IKEA looks to open new processing plant but needs to secure wood first

However, the final decision on executing the project and the selection of an appropriate location is yet to be made and depends on the availability of wood supplies. The firm is currently in negotiations with the state forestry agency over long-term contracts for the delivery of wood in three different regions. "If the talks end successfully, as they seem to be going, we will begin the process of planning the construction [of the plant] pretty soon," said Jan Musiolik, IKEA's domestic director general. Due to very restrictive policies regarding forestry protection, the availabilitys of sufficient wood is the largest problem for the firm. Over the past year, IKEA has invested well over zł.300 million in similar projects. (Puls Biznesu, p. 6) A.K.