U.S. -  Sauder Woodworking Co., North America’s leading producer of ready-to-assemble (RTA) furniture, was awarded by IKEA a 5 year contract for the production of four furniture families, including bedroom furniture, office, entertainment and children’s storage furniture. The partnership will create at least 150 new jobs and involve an equipment investment of over $13 million by Sauder. Sauder has been a supplier to IKEA since 2007 and currently manufactures kitchen cabinets.

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

“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,” said Rob Olson, Chief Financial Officer, IKEA US. “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.”

IKEA is planning to grow its US presence and will open three new stores in 2014 and 2015; Miami, Florida, Merriam, Kansas and St. Louis, Missouri. In 2013, 25 US suppliers, including the IKEA Industry factory in Danville, Virginia, supplied approximately 19% of the cubic meter volume sold in IKEA US stores. Supply from North America (US, Canada and Mexico) equals approximately 31% of the cubic meter volume sold in US stores. Products currently produced in the United States include kitchen cabinets, mattresses, sofas, entertainment furniture, shelving units and appliances.