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. Last Updated: 07/27/2016

$25M IKEA Factory

ST. PETERSBURG — Swedwood, owner of Sweden’s IKEA, intends to invest $25 million in a new furniture factory in Tikhvin in the Leningrad region outside St. Petersburg.

Work on the factory begins in the spring of 2001, a spokesman for the regional administration said Friday. A tender for the contract will be held early next year.

The $10 million first stage of the factory will make furniture parts and panels. Revenues during this stage will be $7 million to $8 million annually, the company estimates.

The $15 million second stage will produce furniture for export, and call for the number of workers to be increased from 340 to 650.