East Europe was an important source of supply for IKEA. Due to the political and economic changes in this region in the late 1980s and early 1990s Swedwood was created with the purpose of ensuring IKEA continuous supply of furniture. Swedwood has since developed to become a highly integrated and effective furniture manufacturer with advanced production facilities.

1991-1995   On April 1, 1991, IKEA founded the industrial group Swedwood which is still a fully owned subsidiary of the IKEA Group. The development during the first five years could be described as a time when some suppliers to IKEA, mainly in East Europe, were incorporated into Swedwood. In its own capacity, Swedwood acquired other independent companies and built a few production units during this period. By the end of 1995 Swedwood consisted of 14 units with 3,300 employees.

1996-2001   This period was characterised by restructuring, reconstruction, modernisation and efficiency increasing measures. A number of capacities were built and much focus was on improving existing units within the Swedwood Group. During this period Swedwood, despite heavy restructuring and construction of new production units, grew significantly and more than tripled its invoicing. By the end of 2001 the Swedwood Group entailed 30 manufacturing units with a staff of 9,500.

2002-2006   The first years of this century presented new challenges to Swedwood. The fast growing global market for furniture and furniture components required further revamping of existing units as well as establishing new capacities at a higher pace than before. Swedwood grew significantly and at the end of this period it had 35 units with 14,100 employees.

2007-   Recently, Swedwood has experienced additional requirements. The furniture business continues to grow and it is important for Swedwood to be located in the proximity of the market to meet local demands. This has resulted in increased activities in other regions of Europe as well as outside Europe. New concepts for building state-of-the-art capacities have been employed to increase the efficiency of all processes, reduce construction time and speed up the transfer of know-how.