News release

Province helps Export-based Company Become More Innovative and Productive

Economic and Rural Development (Jan. 2009 - Jan. 2011)

Scanwood Canada Ltd., a Dartmouth-based furniture manufacturer and exporter, will become more innovative and efficient, while maintaining 280 jobs.

As a direct supplier for Swedish furniture maker IKEA since 1985, Scanwood provides significant economic spin-offs for the local economy, purchasing more than $4 million of goods and services from local suppliers and generating more than $11 million in annual tax revenues.

A $4.75 million loan through the Industrial Expansion Fund will help the company reduce its production costs and line of credit, while creating greater efficiencies through newer, innovative equipment.

"This is an investment in an important business, which contributes to building a strong economy and maintaining valuable jobs," said Economic and Rural Development Minister, Percy Paris. "It will help ensure a Nova Scotian, export-based company is sustainable in the long term."

IKEA values Scanwood as a supplier and has signed contracts with Scanwood for the next four years. Scanwood's proximity to the Port of Halifax makes it a cost-effective location for distribution to IKEA's 46 North American stores.

"Scanwood has been an important member of Nova Scotia's business community for over twenty years with stable volume growth and well-paying jobs," said Bo Thörn, chairman and co-owner of Scanwood Canada Ltd. "We are thankful for this support from the province as it will enable us to modernize and improve our productivity as we continue to operate in a great place to work and do business."

The Industrial Expansion Fund helps industries with innovation and technology, and contributes to a prosperous and sustainable business climate for Nova Scotia. The fund helps protect jobs and support businesses to be more competitive and sustainable. It provides financial support, such as loans and guarantees, when many traditional sources are reluctant to do so.