Swedwood Danville

DESIGN & OVERSIGHT OF NEW FURNITURE FACILITY

Background: Furniture maker Swedwood operates production facilities in Sweden, Germany, Poland, Hungary, Latvia, Romania, Slovakia, and Russia whose primary function is to manufacture and distribute furniture for its parent IKEA, the world’s leading home furnishings retailer.  Swedwood focuses on the backwards integration of the IKEA supply chain to lower its total cost of production and distribution.  IKEA’s motto, “Nothing is impossible”, led Swedwood to swim against the tide of declining furniture production in the U.S. and construct a new, state-of-the-industry facility here.  Its goal is to reduce the cost of products for IKEA’s North American stores and mitigate exchange rate exposure.

Situation: The project’s first step was twofold:  the selection of a plant site and a building contractor.  In 2006, Swedwood’s project team evaluated numerous prospective sites in the Southeast and narrowed their choices to two locations.  Swedwood then added specialists from A.G. Raymond & Company to assist in understanding the complexities of facilities design and construction in the U.S. This task involved Americanizing their European standards for building, process, and infrastructure.  Along with the Swedwood team, the A.G. Raymond & Company staff assessed both prospective locations and recommended the site near Danville, VA.  In parallel with this site selection process, A.G. Raymond & Company assisted Swedwood in conceptual site and building design plus the selection of a general contractor for site preparation and construction.

Due to Swedwood’s fast-paced schedule, A.G. Raymond & Company provided Swedwood with three main areas of support:  (1) finalizing the process layout, (2) acquiring key support equipment, and (3) overseeing construction.  Early in the project Swedwood’s technical staff prepared a conceptual layout and ordered process equipment for production of panel-based IKEA products such as EXPEDIT bookshelves, LACK coffee and side tables.  As the process equipment providers completed their engineering, A.G. Raymond & Company took responsibility for incorporating these production lines into the overall facility and coordinating any needed changes in the building or site.  This step involved detailing the original conceptual site plans, layouts, and building arrangements to satisfy process parameters, space requirements, and local regulatory constraints. 

As the process design was fine tuned, specific issues on material handling, dust extraction, and other support equipment design were resolved.  To select the suppliers for these elements, formal requests for quotation specifying equipment performance were issued.  Following intensive analysis of bids, successful providers were chosen.

Throughout the project A.G. Raymond & Company acted on behalf of Swedwood as their owner’s representative with the general and sub-contractors.  Our objective was to ensure performance to contract, compliance with local codes, and control of costs.  This third area of assistance provided Swedwood with an experienced set of ‘eyes and ears’ to handle issues as they arose and coordinate the numerous contractors, vendors, and suppliers.    

The final design for this facility required 910,000 square feet under roof located on 209 acres, which provides space for another three factories of comparable size.  Construction began in December 2006 with production commencing in January 2008, only 13 months later.  This fast construction, installation, and commissioning time period required quick and definitive actions that only an experienced staff such as A.G. Raymond & Company could provide.  

"I am sure that working with A.G. Raymond & Company made the difference" says Swedwood Danville's President Bengt Danielsson.

Click here to view related photos.     

Click here to read an article on Swedwood by Jeff Crissey from Modern Woodworking magazine (August 2008)   

Click here to read an article on Swedwood by Karl Forth from FDM Magazine (May 2008)   

Click here to read an article on Swedwood by Mark Arend from Site Selection magazine (May 2008)  

A. G. Raymond & Company Inc.  1033 Wade Ave. Suite 102 Raleigh, NC  27605
Phone: (919) 831-0070  Fax: (919) 831-0072  Email: info@raymondnet.com