Ikea China has started construction of its first store in Yunnan.

The southwestern Chinese province will see its first Ikea outlet in its capital city of Kunming, scheduled to open at the end of next year. The firm is investing more than RMB1 billion (US$141 million) into the 120,000sqm three-storey development.

Ikea China area director Lukasz Ostrowski said that the firm has full confidence in the future development of its Chinese business, following more than two decades of rapid and accelerating expansion.

Upon completion, Ikea is anticipated to be operating 35 stores in Mainland China.