IKEA extends flax deal

IKEA has extended its financing of flax manufacturing operation Crailar as part of a supply agreement.

The world’s largest home furnishings retailer will provide a €2.2 million loan to Crailar, headquartered in Portland, Oregan, Canada, as part of a agreement that will ensure the exclusive supply of specified flax textiles in minimum order quantities up to 2019.

Crailar has already received orders and started flax fibre production for IKEA at its European production.

“A robust commercialization agreement together with financing from an iconic global customer is a major step for us as a brand, manufacturer and supplier,” said Crailar CEO Ken Barker. “We are very proud and humbled by this vote of confidence, and are excited to begin delivering Crailar flax fibre to consumers globally, while working with the largest home furnishings retailer in the world.”