The facilities will be acquired by two local buyers, the deputy trade minister has said
A Russian government commission has approved the sale of Swedish furniture maker IKEA’s factories in Russia to two local buyers, Deputy Industry and Trade Minister Viktor Jevtuhov told Izvestia newspaper on Thursday.
The three factories will be acquired by Russian kitchen counter maker Slotex and lumber producer Luzales, according to the official. The facilities will continue to operate and the goods produced will be sold by Russian stores.
“It is important to us that the production facilities function and develop and that jobs are preserved.” Yevtukhov told the media. “If necessary, the new owners can count on all possible measures for state support,” he said.
Meanwhile, brand owner Inter IKEA Group was quoted by Reuters as saying the sale process is subject to a mandatory approval process. “This process is between the authorities and applicant companies. We have agreed with the potential buyers not to share any details with respect to them and the integrity of the sale process.” the company stated.
Russia was IKEA’s tenth largest market in the year to August 2021. For the 12-month period, sales amounted to $1.8 billion, or 4% of the company’s total retail sales.
READ MORE: The number of foreign companies conducting “business-as-usual” in Russia revealed
In March, the furniture maker joined a number of international companies in halting business in Russia due to Ukraine-related sanctions. The company said it would sell factories, close offices and cut its 15,000 employees in Russia. It reopened for a brief fire sale online last summer.
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Source: sn.dk
