Ikea has signed a deal to buy a chipboard plant in Novgorod from Pfleiderer Grajewo, an affiliate of Germany's Pfeiderer Group, Ikea said in a press release, Interfax reported.
Pfeiderer is a supplier for the Swedish retailer.
Before the deal is finalized, the companies need to comply with several conditions, including obtaining permission from the Federal Anti-Monopoly Service, Ikea said.
The deal will be completed in the next few months, after which the plant will be integrated into Ikea's production structure.
The plant will make light wood panels for Ikea products and will have the capacity to turn out 500,000 cubic meters of chipboard panels per year.