ST. PETERSBURG Feb 19 /Prime-TASS/ --The Swedish company Sweed Wood International plans to start production at its furniture factory in the town of Tikhvin in the Leningrad Region this May, the region's Deputy Governor Grigory Dvas told a press conference on Tuesday. According to the original schedule the first stage, costing U.S. $10 million, was to have been launched last October, and the second stage in January 2002. No explanations for the delay were given. The factory, located on an area of 30 hectares, will initially employ 340 workers, with the number increasing to 650 after the completion of the second stage. Sweed Wood International is a subsidiary of IKEA International, the huge Swedish furniture retailer. Earlier this month, IKEA said it plans to invest U.S. $40 million in 2002-2003 into the construction of a Russian distribution center in the Moscow Region. IKEA's representative said the necessity of building a Russian center is due to the expansion of the Russian furniture market, and to an increase in the number of Russian furniture suppliers. IKEA currently has two stores in the city of Moscow, and plans to open another 4 stores in Moscow, 2 stores in St. Petersburg, and about 10 stores in other Russian cities.