Building the world's most environmentally friendly furniture factory

The Norwegian industrial company will build a state-of-the-art furniture factory in Norway, at Magnor in Eidskog. We have supported the project with more than NOK 27 million in grants.

'This project will create many new jobs and, importantly, increase Norway's export revenues. The furniture factory will meet a range of climate requirements that are unique for this type of industrial building. The company will also develop a large activity park and an open factory site for the wider community to enjoy and benefit from,' says Per Ottar Walderhaug, financing adviser at our Innlandet office.

Vestre's CEO, Jan Christian Vestre, emphasises that the funding was instrumental in making the project possible.

- 'We decided to do this in the midst of the coronavirus pandemic and the biggest global economic downturn since the 1930s. It simply would not have been possible without funding from Innovation Norway. We have worked extremely well together throughout the process, and I am very impressed by the expertise of Innovation Norway's team in Innlandet. They have been solution-oriented and creative, while also contributing highly valuable knowledge and experience.'

For more than 70 years, the Oslo-based company has produced furniture for the global market. Its components have come from a range of subcontractors across Scandinavia. In 2013, it opened its first factory in Torsby, Sweden, and is now building another about an hour away. With its factory in Magnor, Vestre can demonstrate even more clearly that it is possible to compete globally from Scandinavia.

'The building will take shape during spring 2021, and the first machines will be delivered in the autumn. We will adopt entirely new production technology based on Industry 4.0, including self-learning robots, object recognition, scanners and big data. The entire factory can be controlled from a tablet! Through highly automated production, digitalisation and sustainable solutions, we will prove that Norway's finished goods industry can compete with anyone, anywhere in the world,' Vestre emphasises.

The Plus was designed by renowned Danish architect Bjarke Ingels, who also designed Google's new headquarters in California. Vestre aims to make The Plus a popular visitor destination.

'We want TripAdvisor to describe this as a must-see destination in Norway. I’m confident we can achieve that with spectacular architecture, incredibly cool machinery and a 30-hectare adventure park,' says Vestre.

Creating social spaces where people can come together is difficult during the ongoing pandemic. Even so, Vestre has seen strong growth recently. One reason is that outdoor spaces and furniture have become more important than ever. The company continues to enter new markets and now has its own export offices in Torsby, London, Berlin, New York and Los Angeles. By 2025, 85 per cent of its production will be destined for export markets.

'We have two major goals: to become the largest in Europe and the world's most sustainable furniture manufacturer. Norway needs more profitable export companies, and we must increase non-oil exports. I hope and believe this project can inspire others to invest in Norwegian industry,' says Vestre.

The Plus will become the world's first furniture factory and the first industrial project in the Nordic region to achieve the highest environmental certification, BREEAM Outstanding.

'We are building with solid timber, low-carbon concrete and recycled reinforcing steel, and the construction site uses a combination of zero-emission and fossil-free machinery. We require 100 per cent renewable energy throughout the supply chain and are phasing out environmentally harmful materials,' says Vestre, adding:

- We will prove that climate action and jobs do not have to be at odds, nor do economic growth and biodiversity.

In 2019, as in several previous years, the company took part in Milano Design Week, one of the world's largest and most important furniture and design fairs. Our office in Italy helped organise the Norwegian exhibition, which featured seven Norwegian furniture manufacturers and 21 designers.

Building on this, and as part of Vestre's focus on the Italian market, our office initiated a partnership between Vestre and the Italian Association of Landscape Architecture. As a result, the City of Milan contacted the company to create a community space featuring colourful outdoor furniture in one of the city's neighbourhoods.

'We have benefited greatly from and thoroughly enjoyed working with Innovation Norway in Milan. The team there is skilled, creative, efficient and always ready to help. They make a real difference for Norwegian companies looking to expand into Italy,' Vestre emphasises.

This article was originally published on 3 February 2021 and stated that we had provided more than NOK 45 million in funding. Since then, a NOK 20 million loan has been cancelled, and the company has so far drawn down only a small proportion of a grant. As a result, our total funding as at 1 November 2022 amounts to NOK 24.25 million. We will pay the remainder of the grant awarded to Vestre AS in 2023, bringing our total support to NOK 27.4 million.