IKEA owner Ingka Group will buy €720 million forest land in Europe to boost ‘sustainable raw materials’ for furniture

IKEA’s largest franchisee, Ingka Investments, is buying forest land worth about $1,000 ₹According to Bloomberg, 7.39 lakh crore (720 million euros) was spent in Estonia and Latvia to meet the need for sustainable raw materials for furniture.

The acquisition of this 3,80,000 acres is IKEA’s largest deal to date. Ingka Investments will purchase the land from Sodra, Sweden’s forest owners’ association, the company said on October 20.

Ingka Investments is the investment arm of Ingka Group, IKEA’s holding company.

About Ingka Group: How much land does IKEA have?

Ingka Group, which operates IKEA stores in 31 markets and accounts for 87% of global IKEA retail sales, currently manages 331,000 hectares of forest land in seven countries. Owned by a charity, the company reinvests profits into business and sustainability projects rather than paying dividends.

This acquisition brings Ingka’s recent investments to over €1 billion. It recently acquired AI logistics platform Locus, a flagship retail and office property in Manhattan for a second IKEA store, and a minority stake in Vanguard Renewables, which converts food waste into renewable natural gas.

(With input from Bloomberg)