Ingka Investments, the investment arm of Ikea-owner Ingka Group, has agreed to acquire approximately 153,000 hectares of forest land in Latvia and Estonia for €720 million.

The company said the long‑term investment will enable the retailer to produce more wood locally and support its sustainability goals.

The land has been sold by Södra, Sweden’s largest forest owners’ association, and the purchase is subject to approval by the relevant regulatory authorities.

Ingka Investments already owns 331,000 hectares of forested land across seven countries.

Earlier this year, Ingka Investments earmarked 16,000 hectares of its Latvian forests for an applied research collaboration with the European Forest Institute and Preferred by Nature.

The project trials closer‑to‑nature and continuous‑cover forestry to improve resilience and minimise biodiversity impacts, with the aim of scaling proven methods across Ingka Investments’ forests and wider supply chains.

The company planted 14 million seedlings, which it claims contributed to overall forest expansion and an estimated net growth of 500,000 cubic metres annually.

Ingka Investments said around 22 per cent of its existing forests are managed with a special focus on conservation, prioritising environmental objectives first.

“Our unique ownership structure allows us to invest with a long‑term perspective rather than short‑term quarterly thinking,” said Peter van der Poel, managing director of Ingka Investments. “Investing in forestry represents exactly that kind of generational commitment.

“We want to contribute to the regional economies where we’re present and maintain healthy forests for the generations to come.”

Earlier this month, Ingka Investments announced it had acquired US‑based logistics technology company Locus.

The software company offers an AI‑powered logistics management platform featuring advanced route optimisation, real‑time tracking, and the smart use of vehicles and resources.

Ingka Investments said the purchase will strengthen Ikea’s digital capabilities, helping it to “transform home delivery” and giving Ikea more control over a “crucial moment” in the customer journey.

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