COMMERCE, CA - Nova LifeStyle, Inc. /quotes/zigman/5637069/quotes/nls/stvs STVS -2.50% (website: www.novaLifeStyle.com ) an emerging leader in the U.S. and worldwide in self designed and manufactured urban contemporary furniture which increasingly is sold under NOVA brand names, announced today that, as required by a new long term supply agreement with IKEA, the world's largest home furnishing retailer, construction is underway for a state of the art 15,000 square meter production line for pigment lacquer furniture adjacent to its factory in Dongguan. Upon anticipated completion of the new line in December this year, the ramp up to full capacity is expected to take 12 to 18 months. All production of the highly popular lacquered furniture will be solely for IKEA, manufactured in a "green" facility competitive with any furniture factory in the world.
An Exciting Growth Opportunity
Mr. Jeffrey Wong, CEO of Nova, stated, "Being selected to become an IKEA supplier is one of the most exciting developments in our Company's history. More than just an opportunity to substantially grow our sales, with a separate new facility that adds product generating what could potentially amount to roughly 80% of our current sales, it is a rewarding reflection on the high level of Nova's furniture manufacturing capability and the skill and dedication of our employees."
Mr. Wong said discussions with IKEA began in 2010, when IKEA decided that its rapid expansion in Asia required additional manufacturing in mainland China. Much of the discussion since then has focused on how to develop a cost effective state of the art "green" facility that will remain competitive with the installation over the next several months of the most advanced equipment available from top Italian and German manufacturers such as CEFLA, Homag, Coster and Besse.
Full Compliance With IWAY
Additionally, the new production facility will be fully compliant with IWAY, or IKEA's way, a supplier code of conduct encompassing environmental, societal and working conditions, ranging from chemicals use and disposal of hazardous and non-hazardous waste to fire prevention, worker health and safety, wages benefits and working hours, to Child Labor, discrimination and harassment and abuse.
The Company noted that there are other approvals ahead, including one from the Supplier Council of IKEA and a final sales agreement once the production line is completed in December this year.
"We see this milestone development for NOVA as one that moves our Company into the ranks of the world's top furniture manufacturers," stated Mr. Wong, "and also helps ensure that our growth will continue well beyond 2013."
About Nova LifeStyle, Inc.
Nova LifeStyle, Inc., a U.S. company headquartered in California, is a fast growing, innovative designer and manufacturer of modern LifeStyle furniture, primarily sofas, dining rooms and cabinets in matching collections. Nova's products are made in the U.S., Asia and its state of the art factory completed in 2011 in Dongguan, China and marketed worldwide. Nova's collections of LifeStyle furniture brands include Diamond Sofa ( www.diamondsofa.com ), Colorful World, Giorgio Mobili and others. Nova's products feature urban contemporary styles with comfort and functionality in matching furniture collections and upscale luxury designs appealing to LifeStyle-conscious middle and upper middle-income consumers in the U.S., China, Europe and elsewhere in the world. To learn more about Nova LifeStyle, Inc., please visit www.novaLifeStyle.com .
IKEA is the world's leading home furnishings company IKEA strives to be 'The Life Improvement Store,' and since its 1943 founding in Sweden, has offered home furnishings of good design and function, at low prices so the majority of people can afford them. There are currently more than 330 IKEA stores in 40 countries, including 38 in the U.S. IKEA incorporates sustainable efforts into day-to-day business and supports initiatives that benefit children and the environment. For more information, go to IKEA-USA.com.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Nova's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Nova's filings with the Securities and Exchange Commission.
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