700 jobs planned for closing Virginia furniture plant

A manufacturer of work vans used by package delivery companies and other businesses plans to employ 700 workers at a Virginia IKEA furniture plant slated for closing.

Gov. Ralph Northam’s office said Friday that Morgan Olson LLC would move into the nearly 1-million-square-foot site that IKEA planned to close in December, cutting 300 jobs.

Step vans built by Sturgis, Michigan-based Morgan Olson are used to delivering online purchases to locations across North America. The vehicles also deliver newspapers, baked goods, snack food distributors, and rented uniforms.

Virginia agencies are agreeing to provide $8.2 million in grants in addition to tax breaks.