Ikea’s parent company Ingka Group has acquired 5,500 hectares of land in the South Island as part of its commitment towards responsible forest management.
The land, Otago’s Wisp Hill, will be used for planting new forests as part of the 30 plus year afforestation scheme. 330 hectares will be planted with radiata pine this year, with 3000 hectares, accounting for more than 3 million seedlings, planted within the next five years.
Meanwhile, the remaining 2,200 hectares are to naturally revert into native bush, helping to regenerate the local ecosystem, according to the company.
“Responsible forest management creates jobs and adds value in the local communities by supporting the local economy,” said Krister Mattsson, MD of Ingka Investments, Ingka Group.
“We will work closely with the former owners of the land and with local forestry specialists to prepare the land for a new forest.
“Our commitment to responsible forest management means taking proper care of the environment, respecting the needs of the local communities and setting high standards for the business partners we work with.”
This new afforestation investment in New Zealand will see its first planned harvest to take place at the end of the first rotation, 30 years after planting.
Ingka Group’s New Zealand land purchase follows their 2019 announcement of the opening of stores and creating a digital presence in the country for the first time.