IKEA Invests Record €720 Million on Securing Trees for Furniture

The largest IKEA franchisee is buying €720 million ($840 million) worth of forest land in Latvia and Estonia in its biggest such acquisition to ensure a well-managed source of sustainable raw material for its furniture.

Ingka Investments, the investment arm of Ingka Group, is buying about 153,000 hectares (380,000 acres) of land from Sweden’s forest owners’ association Sodra, according to a statement on Monday. Just under 90% of the area is covered by woods. Ingka said that the purchase aligns with its long-term strategy to invest sustainably and strengthen local value chains.