Danville's Ikea to shut down, leaving 300 to search for new jobs
kea will shut down its operations at Cane Creek Centre industrial park in December, forcing its nearly 300 employees to find work elsewhere.
The company announced the decision Wednesday afternoon, citing high costs for raw material in the United States.
Production will move to existing Ikea Industry manufacturing sites in Europe to meet demand for affordable furniture in North America, company officials said in a news release.
"Conditions are not in place to run competitive production in Danville," site manager Bert Eades said. "Despite many efforts to improve, the cost structure for production in Danville is still too high, especially, when it comes to raw materials. This results in pricing significantly higher than for other existing Ikea plants making the same products."
He said the ongoing tariff wars between the United States and other countries do not play into the high costs.
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