In mid-December IKEA, a home furnishings retailer based in Älmhult, Sweden, announced plans to build a 1.7 million square-foot distribution center on 115 acres in the Savannah International Trade Park. The facility will allow IKEA to receive goods at the Port of Savannah and distribute product to its retail stores in the Southeast and Texas.
The first phase of the project will consist of a 785,000 square-foot facility four miles from the Garden City Terminal, which the company expects to be operational by Summer 2007. An expansion of approximately 975,000 square feet is planned after the initial building is up and running.
With more than 1,500 suppliers in 55 countries around the world, IKEA expects to receive approximately 15,000 twenty-foot containers per year at the facility.
“We are thrilled about the opportunity to locate our Southeastern Distribution Center at the Savannah International Trade Park,” said Keith Keller, IKEA North America’s Distribution Services president. “As one of the fastest growing ports in the country, Savannah offers the long-term capacity, infrastructure and geography that we were seeking to complement our distribution presence in North America.”
Currently with more than 225 stores in 33 countries, IKEA continues to expand around the world. North America accounts for 16% of the company’s global sales.