IKEA Group to invest in Estonian forest portfolio, eyes regional value chain growth
The Estonian timber industry is getting more and more world-class companies on board, thanks to its sustainable forestry practices, strategic location, and strong infrastructure. This week, Ingka Investments, IKEA Group’s investment arm, has secured approval to purchase 153,000 hectares of Baltic forest land for €720M, reports ERR.
The Estonian Competition Authority has approved the acquisition of forest assets from Swedish-owned Södra Forest Estonia, which encompasses 18,000 hectares in Estonia and 135,000 hectares in Latvia.
The transaction is described as a strategic move by IKEA to strengthen control over its wood supply chain, while also committing to regional value creation. Tauno Kusma, forestland country manager at Ingka Investments Estonia, said the company aims to increase the proportion of wood processed locally to strengthen the Baltic forestry value chain.
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Originally published on 4 Dec
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