Ikea picks Pierce County for distribution facility

Ikea, the Swedish home-furniture retailer, plans to open a distribution center on 65 acres in Pierce County to supply a growing number of stores in the Northwest.

The distribution center is set to open by spring 2008 at the Frederickson Industrial Area in unincorporated Pierce County. Ikea now uses distribution centers in Vancouver, B.C.; and Tejon, Calif., to supply its Northwestern stores.

Ikea plans to build on vacant land it is buying from the Port of Tacoma for $8.6 million.

About 150 employees will work at the distribution center when it's fully operational. The first phase will consist of 834,000 square feet; 220,000 square feet more could be added later.

Spokesman Joseph Roth said Ikea chose Pierce County because it's centrally located within the Northwest and it's close to the Port of Tacoma.

Ikea has 1,300 suppliers in 54 countries. Products destined for the Northwest are now delivered to Vancouver, but the company will rely more on the Tacoma port once the distribution center opens, Roth said.

"They have great capacity and great growth potential," he said.

The Frederickson site will allow Ikea to build a distribution center that's significantly bigger than the one in Vancouver, Roth said. Plus, it satisfies Ikea's preference to own rather than rent space, as it does in Vancouver.

Roth did not rule out the possibility that Ikea will close the Vancouver site, although it has announced no such plans.

The Tejon center covers 2 million square feet and will continue to supply a growing number of stores in California.

The Pierce County center will supply the Renton Ikea store, four stores in western Canada and stores scheduled to open next year in Portland and Draper, Utah, near Salt Lake City.

Ikea has 235 stores in 34 countries, including 39 in North America, where it plans to open three to five stores a year.

The 500-acre Frederickson Industrial Area was bought by the Port of Tacoma in the 1960s and '70s and is made up mostly of manufacturers, including Boeing, Tacoma Guitars and Medallion Foods.

The port has now sold all but 100 acres in Frederickson.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com