HALIFAX (July 9, 2004) - Scanwood Canada Ltd., a furniture manufacturing company in Dartmouth, is taking the company’s future into its own hands - literally - by purchasing the company from IKEA Group, with help from Nova Scotia Business Inc. (NSBI). The purchase will allow the company to be 100 per cent Nova Scotian-owned, ensure that its IKEA contracts remain with the Dartmouth facility, and allow Scanwood to diversify its customer base.
Scanwood was formerly known as Swedwood Canada Ltd., an IKEA Group company. It is a principle supplier of ready-to-assemble furniture to IKEA retail stores. Tommy Holmer, past President and CEO of Swedwood Canada Ltd., is purchasing the company from IKEA and will name the new company Scanwood Canada Ltd. NSBI will provide a loan of $1 million to Scanwood to facilitate the purchase.
"This change will allow us to act independently and direct our own future," said Tommy Holmer, President and CEO of Scanwood Canada Limited. "IKEA will remain a valued purchaser; meanwhile, we will also be able to expand our market and increase our exports - a vision I’ve had for the company for many years."
In purchasing the company, Mr. Holmer and Scanwood:
- will operate as an independent Nova Scotia company generating its own revenues
- will capitalize on current trade agreements between the company and its previous parent, IKEA, and provide opportunities to acquire additional export contracts with IKEA
- will diversify the company’s customer base by targeting other furniture retail companies in the U.S. and Canada (In the past, the IKEA-owned company was limited to selling its product within IKEA only)
"Scanwood has already found its place in the international marketplace and is producing for one of the world’s largest home furniture retail stores," said Ernest Fage, Minister of Economic Development. "We’re proud that Scanwood and NSBI have created a business partnership, satisfying our common goal of growing the province’s economy through international export, growth, and employment."
The company now employs 215 people in its plant, located in the Burnside Industrial Park. The site has more than doubled in size since opening in 1986, and currently occupies more than eight acres of land.
"Scanwood is a perfect example of how our companies can add value to our resources to produce a product that is marketable on a global level," said Stephen Lund, President and CEO of NSBI. "Our loan will help Scanwood find additional growth opportunities, and shows how we can tailor our services to meet the individual growth needs of our clients."
Nova Scotia Business Inc. is the province’s business-development agency, an organization that works with companies to deliver business solutions. The private sector-led organization works to attract new businesses to the province and helps those already in Nova Scotia expand, through services such as export development and financing.