Nova LifeStyle, Ikea Partner for Furniture

May 15, 2012  by in UnCategorized   

By Home Furnishings Business in Business Strategy on May 16, 2012

Contemporary furniture supplier Nova LifeStyle is adding 15,000 square meters to its pigment lacquer furniture production line in China to meet a long-term supply agreement with Ikea. 

Once completed in December, the line will ramp up to full capacity within 18 months. Production will be dedicated to Ikea.

"Being selected to become an Ikea supplier is one of the most exciting developments in our company's history," said Jeffrey Wong, CEO of Nova. "More than just an opportunity to substantially grow our sales, with a separate new facility that adds product generating what could potentially amount to roughly 80 percent of our current sales, it is a rewarding reflection on the high level of Nova's furniture manufacturing capability and the skill and dedication of our employees."

Discussions between Ikea and Nova began in 2010 when Ikea decided its rapid expansion in Asian required additional manufacturing in mainland China. Wong said much of the discussion since then has focused on developing an efficient green facility.

The new production facility will be compliant with IWAY, or Ikea's supplier code of conduct encompassing environmental, societal and working conditions, ranging from chemicals use and disposal of hazardous and non-hazardous waste to fire prevention, worker health and safety, wages benefits and working hours, to child labor, discrimination and harassment and abuse.

"We see this milestone development for NOVA as one that moves our company into the ranks of the world's top furniture manufacturers, and also helps ensure that our growth will continue well beyond 2013," Wong said.