Boydak Holding invests in furniture business in Russia, Ukraine

Mar 14, 2011. /Lesprom Network/. Boydak Holding, a Turkish group, involved in several businesses, has acquired a Russian and a Ukrainian plant for $20 million to boost its furniture business, as the local resource reported. They are the Kayseri-based group’s first furniture production investments abroad and occurred through Boydak subsidiary Boydak Foreign Trade Company, according to information provided by the firm. “It is not easy for Turkey to do foreign trade with Russia and Ukraine, so we will enter these markets by producing there,” said Memduh Boydak, CEO of Boydak Holding. The acquisition from the Poland-based Forte aimed at overcoming regional difficulties in exports and meeting a possible rise in demand in these countries, company officials said. Boydak plans to invest $60 million more over five years in additional buildings and machinery to diversify production with beds, armchairs and sofas. The company is aiming for annual revenue volume of $100 million with 600 employees by the end of its five-year growth plan. The acquisition is part of the group’s broader plan to make $300 million worth of investments in 2011, officials said. Boydak board member Murat Bozdağ said the company would produce in Ukraine and Russia under the Bellona name, one of the two main Boydak furniture brands in Turkey, after keeping the current brand name for each of the companies for one year. The company earlier opened stores in Russia but closed them all due to the turmoil in the country in 1998, he said. Commenting on the company’s business in Libya, he said: "We have five stores in Libya. We used to get news on developments there, until one week ago, but we do not know how the situation is now.”