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Ikea negotiations took three years, says Jalisco politician. Ikea negotiations took three years, says Jalisco politician.

Jalisco furniture makers to help supply new Ikea store

Economic development secretary says store and production facility will open next year

The Swedish furniture giant Ikea is saying very little about its plans for Mexico but Jalisco’s economic development secretary filled in a few of the blanks yesterday.

José Palacios Jimémez told the newspaper Informador that there was a three-year-long negotiation process between the company and state authorities and the municipality of Guadalajara.

He said the world’s largest furniture retailer will not only open its first store in Mexico next year, but it will also operate a brand new production facility.

Palacios said Ikea plans to work with Jalisco manufacturers. “That means that a lot of what it will be selling will be made by Jalisco furniture makers.”

He predicted that the state’s furniture manufacturing sector will experience an “unprecedented” boost with the arrival of Ikea. “Jalisco might not be the top furniture manufacturer [in Mexico], but we are in second place . . . .”

The secretary said the retailer chose Guadalajara for its first Mexican venture after considering the region’s competitive advantages, as the municipal and state governments offered a streamlined process to get started.

Palacios stressed that there were no other incentives, either tax or land-related.

He declined to mention investment and employment figures regarding the new store and factory, citing confidentiality agreements.

Ikea expressed interest in coming to Mexico over a year ago and opened an office in Mexico City. Last month, job postings for Mexico appeared on its website but otherwise the company has been keeping its plans secret.

Source: Informador (sp)

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