Furniture giant IKEA making masks to help fight coronavirus

IKEA has reopened all but one store in China, where the virus emerged, but across markets a majority of the 436 stores are temporarily closed. (File/AFP)
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Updated 31 March 2020

Furniture giant IKEA making masks to help fight coronavirus

  • The first batches for European health care facilities are in transit
  • Several other companies are also working to help address an acute shortage of medical supplies

STOCKHOLM, March 31 : Furniture giant IKEA is producing face masks and other protective gear for hospitals, joining a growing list of companies branching out of their normal business areas to help meet equipment shortages in the fight against coronavirus.
Having started off with masks for staff in China in early stages of the pandemic, the Swedish group is working with several suppliers to ramp up output of masks for health workers, as well as hand sanitisers, visors and single-use aprons.
The first batches for European health care facilities are in transit, Henrik Elm, global supply manager at brand owner Inter IKEA Group, which is in charge of supply, told Reuters.
Several other companies are also working to help address an acute shortage of medical supplies, with vacuum cleaner company Dyson making ventilators, fashion group Armani producing medical overalls and spirits brand Ricard donating alcohol for sanitisers.
Working from home
IKEA has reopened all but one store in China, where the virus emerged, but across markets a majority of the 436 stores are temporarily closed.
Demand for office furniture is holding up as many people are working from home in the health crisis, Elm said.
“The sales pattern is changing. One area where we are selling pretty well compared to others is office furniture. People are working from home and they have identified needs in their homes for it,” he said in an interview.
“So, it (demand) is distributed differently — in some areas we keep it up well, in some we have a major impact.”
Well-prepared’
Elm said supply chain disruptions had increased with the spread of the virus to Europe and America, with closed borders or restricted movement a key bottleneck.
IKEA has managed to cope, however, partly by spreading inventories to warehouses in several locations, he said.
“So far, we have seen a limited effect on the availability of our offer,” he said.
Elm said he expected no shortages of wood or other materials, such as plastics and textiles, as global demand for such materials was in decline.
One area of concern, however, is finding room to store goods already in transit to markets where IKEA has temporarily closed many of its stores.
“There will be constraints in coming weeks in harboring these goods. Warehouses will be a bottleneck,” he said. “Things that were on their way we are either re-steering or storing.”
IKEA produces a tenth of products itself and sources the rest from suppliers, mostly in Asia and Europe.
As IKEA and other retailers adapt to slowing consumer demand, many suppliers and service partners are struggling.
Elm said IKEA was assisting them with loans, swift invoice payments and help accessing government support packages.


EU pledges to stay green in virus recovery

Updated 29 May 2020

EU pledges to stay green in virus recovery

  • To help economies from the 27-nation bloc bounce back as quick as possible

BRUSSELS: The European Commission pledged on Thursday to stay away from fossil-fueled projects in its coronavirus recovery strategy, and to stick to its target of making Europe the first climate neutral continent by the middle of the century, but environmental groups said they were unimpressed.

To weather the deep recession triggered by the pandemic, Commission President Ursula von der Leyen has proposed a €1.85 trillion ($2 trillion) package consisting of a revised long-term budget and a recovery fund, with 25 percent of the funding set aside for climate action.

To help economies from the 27-nation bloc bounce back as quick as possible, the EU’s executive arm wants to increase a €7.5-billion ($8.25 billion) fund presented earlier this year that was part of an investment plan aiming at making the continent more environmentally friendly.

Under the commission’s new plan, which requires the approval of member states, the mechanism will be expanded to €40 billion ($44 billion) and is expected to generate another €150 billion in public and private investment. The money is designed to help coal-dependent countries weather the costs of moving away from fossil fuels.

Environmental group WWF acknowledged the commission’s efforts but expressed fears the money could go to “harmful activities such as fossil fuels or building new airports and motorways.”

“It can’t be used to move from coal to coal,” Frans Timmermans, the commission executive vice president in charge the European Green Deal, responded on Thursday. “It is unthinkable that support will be given to go from coal to coal. That is how we are going to approach the issue. That’s the only way you can ensure you actually do not harm.”

Timmermans conceded, however, that projects involving fossil fuels could sometimes be necessary, especially the use of natural gas to help move away from coal.

The commission also wants to dedicate an extra €15 billion ($16.5 billion) to an agricultural fund supporting rural areas in their transition toward a greener model.

Von der Leyen, who took office last year, has made the fight against climate change the priority of her term. Timmermans insisted that her goal to make Europe the world’s first carbon-neutral continent by 2050 remained unchanged, confirming that upgraded targets for the 2030 horizon would be presented by September.

Reacting to the executive arm’s recovery plans, Greenpeace lashed out at a project it described as “contradictory at best and damaging at worst,” accusing the commission of sticking to a growth-driven mentality detrimental to the environment.

“The plan includes several eye-catching green `options,’ including home renovation schemes, taxes on single-use plastic waste and the revenues of digital giants like Google and Facebook. But it does not solve the problem of existing support for gas, oil, coal, and industrial farming — some of the main drivers of a mounting climate and environmental emergency,” Greenpeace said.

“The plan also fails to set strict social or green conditions on access to funding for polluters like airlines or carmakers.”

Timmermans said the EU would keep investing in the development of emission-free public transportation, and promoting clean private transport through the EU budget.