The Norwegian furniture manufacturing company IMG Group AS has signed an agreement with the operator of the Panevėžys Free Economic Zone (FEZ). The IMG Group decided to build its first joint furniture factory and distribution centre in Europe in Panevėžys city. The group will establish in several stages. The first is scheduled to be completed in early 2019. Initial investment will amount up to 10 million Euros and created 125 new jobs.
This is a cornerstone development for IMG as it looks to strengthen its competitive position in Europe. Currently the European business is built around container supply from Asia.
James Tate, the President of IMG commented that ‘This new facility will enable IMG to reduce product delivery times as well as provide development possibilities for European specific product ranges. The increased flexibility will mean IMG can better serve our current customers enabling expansion into new, untapped markets’.
Lars Inge Solnørdal Jakobsen, the COO of IMG confirms that ‘Panevezys in Lithuania was selected due to the strategically advantageous location, a strong and skilled labour force who are furniture specialists as well as the ease of doing business in Lithuania’.
The provisional plan for IMG is to begin site construction in mid-2018, with the aim of commencing limited production and distribution in the first half of 2019.
This is a very exciting development for IMG and will be key in its ambitions to double the size of the business within the next five years.
‘IMG Lithuania will strengthen our competitive position in Europe whilst building on our core strength in vertically integrated production. This is key in allowing IMG to deliver our range of comfort focused products with industry leading quality. Creating the best possible value for consumers is core to IMG. I look forward to the possibilities that Lithuania brings to our European business’ (James Tate).
MORE INFORMATION (in Lithuanian)