IKEA invests 450 million euros in Portugal

PORTUGUESE PRIME Minister, José Sócrates, announced last week that Portugal is embarking on a new route of foreign investment. Sócrates confirmed Portugal’s first step into a new economic period with the signing of a contract with Swedish furniture group, IKEA.

With the new factory opening in the north of Portugal at Ponte de Lima, over the next five years more than 1,650 jobs will be created and an investment of over 450 million euros will be received.

The director general of IKEA, Andre de Wit, said that, by 2008, the factory would be producing ‘Swedwood’ furniture and around 90 per cent of its production would be for exportation. Andre de Wit revealed that, in the second phase, IKEA could extend its investment in Portugal to more than 100 million euros.