Swedish Retailer IKEA to Locate Southeastern Distribution Center in Savannah

Facility to Employ More Than 150

SAVANNAH, Ga. – Governor Sonny Perdue and IKEA officials announced today that IKEA, the world’s largest home furnishings retailer, will build a 1.7 million-square-foot distribution center on 115 acres at the Savannah River International Trade Park. IKEA anticipates the new distribution center will create 150 new jobs upon its completion.

The first phase of the project consists of a 785,000 square-foot facility, which IKEA anticipates will be operational by summer 2007. The company plans to expand the initial facility by approximately 975,000 square feet once the building is operational. The Savannah Distribution Center will be located four miles from the Garden City Terminal at the Port of Savannah.

“The importance of IKEA’s role in Georgia’s economy is growing stronger every day,” said Governor Sonny Perdue. “Thanks to an excellent partnership between the state’s economic development officials, the Georgia Ports Authority and the Savannah Economic Development Authority, IKEA is staking its future here in Georgia.”

IKEA expects to receive 15,000 Twenty-foot Equivalent Unit containers (TEUs) through the Port of Savannah at the completion of the project. The goods received through the Port of Savannah will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores. With more than 1,500 suppliers in 55 countries around the world, IKEA globally transports products to its stores through regional distribution centers. This Savannah Distribution Center will provide the primary inventory to IKEA stores in the Southeast and Texas, and can supply other stores across the country as needed. The Savannah Distribution Center will serve IKEA stores in Atlanta, Ga.; Frisco, Texas; Houston, Texas; with a future store under construction in Round Rock, Texas.

“We are thrilled about the opportunity to locate our Southeastern Distribution Center at the Savannah River International Trade Park,” said Keith Keller, IKEA North America’s Distribution Services president. “As one of the fastest growing ports in the country, Savannah offers the long-term capacity, infrastructure and geography that we were seeking to complement our distribution presence in North America. A Savannah-based distribution center will help IKEA ensure our stores continue to offer well designed and functional home furnishings at affordable prices.”

“We would like to thank IKEA for their confidence in our ability to handle their business,” said Doug J. Marchand, executive director of the GPA. “This announcement will create jobs and economic opportunities throughout Georgia’s supply chain for many years to come.”

“This is the second announcement in four months of a major import distribution center in the Savannah River International Trade Park, further confirming the professional operation of the Port of Savannah and the area’s position as one of the most ideal for port related distribution. With the Georgia Ports Authority as the backbone of the deal, SEDA is proud to have been involved in making it happen,” said SEDA president Rick Winger. “We welcome IKEA to the Savannah community.”

With more than 225 stores in 33 countries, IKEA currently is expanding its presence around the world by opening new stores. In North America, IKEA is opening approximately three to five stores a year. U.S. stores planned include locations in: Brooklyn, N.Y.; Canton, Mich.; Draper, Utah; Dublin, Calif.; Portland, Ore.; Round Rock, Texas; Somerville, Mass.; and West Sacramento, Calif. Other distribution centers in North America include facilities in: Bristol, Pa.; Brossard, Quebec; Perryville, Md.; Tejon, Calif.; Vancouver, British Columbia; and Westhamton, N.J. To visit the IKEA Web site, please go to http://www.ikea-usa.com.