(MENAFN) Swedish-founded multinational group IKEA announced a decision to shut down its only factory in the United States by this year's end.
This move will cost 300 jobs to be lost, however, it will be more cost effective to make the products in Europe and import them.
IKEA explained that raw material expenses were too high compared to plants in Europe, saying that prices at the plant in the southern Virginia town of Danville were "significantly higher."
Site Manager of IKEA Bert Eades stated: "we made every effort to improve and maintain the competitiveness of this plant, but unfortunately the right cost conditions are not in place to continue production in Danville, VA for the long-term."
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