Ingka Investments, the investment division of the largest IKEA operator, is purchasing 720 million euros worth of forest land in Latvia and Estonia. The retailer wants to process more wood locally and focus on sustainable forest management.
Long-term model
Ingka Group, which operates in 31 markets and accounts for 87% of IKEA’s global sales, is owned by a charitable foundation. As a result, profits flow back into the business rather than to private shareholders, enabling self-financed, long-term investments such as this forest land purchase in the Baltic states. The retailer wants to increase the proportion of wood that is processed regionally by working with Baltic sawmills and board manufacturers.
