IKEA spent 9 bln rubles on Ufa project
UFA. Aug 25 (Interfax) - Sweden-based home furnishing retailer IKEA invested about 9 billion rubles in construction of a multi-purpose shopping complex in Ufa, Per Wendschlag, the general director of IKEA Russia and CIS, said at a press conference held in conjunction with the opening of IKEA's new store in Ufa.
Having completed the projects in Ufa and Samara, IKEA now plans to open another store in Moscow region.
IKEA wants to expand its ties with local suppliers, which is a priority strategy for the company's business, Wendschlag said.
"Company management is eager to work with local producers. The main issue is their readiness to do that. We will promote that process," Bashkortostan President Rustem Khamitov told journalists. The internal republic has reorganized the way it works with investors and major companies. "The new investment climate will get their attention," he said.
The Mega Ufa shopping mall covers 130,000 square meters, including 28,000 square meters for the IKEA store.
Mega Ufa was originally scheduled to open in the fall of 2008. IKEA's investment was expected to total 4.5 billion rubles. However, the project was halted after violations were uncovered in the way the Federal Migration Service issued work permits to foreign staff. In addition, Bashkortostan prosecutors claimed that the organizations overseeing construction of the complex were not complying with Ufa's building regulations, resulting in a suit against general contractor Kasastroy LLC. In the end, a new tender was held to select a general contractor, which was won by Renaissance Construction.
