Samsung Electronics’ Russian plant which has been shut down in the aftermath of the special forces operation in Ukraine, may be sold or leased to a local company, according to Russian news source.
Russian consumer electronics distributor VVP Group may produce electronics at Samsung’s Kaluga plant near Moscow, according to Kommersant, a Russian media outlet, citing multiple sources on Jan. 23.
According to reports, VVP Group is currently in negotiations to either purchase or lease the television production line of a specific plant, with the intention of using it to manufacture their own brand of products, as well as third-party items. In addition, it is said that VVP Group is also looking into the possibility of producing other products including washing machines at the plant in the future.
“There are no plans to sell the Kaluga facility,” Kommersant quoted a Russian Samsung Electronics official, adding that VVP Group and the Ministry of Trade, Industry and Energy did not respond to requests for confirmation.
Samsung Electronics’ Kaluga plant has produced TVs, refrigerators, and washing machines since its completion in 2008, but in February 2022, Ukraine-Russian war occurred and Western sanctions began, the plant was shut down in March of that year due to components supply problems.
Foreign home appliance manufacturers such as LG Electronics and Germany’s Bosch, along with Samsung Electronics, have halted production in Russia since the Ukraine crisis.
According to Kommersant, an electronics distributor DNS is reportedly discussing a deal to lease an LG Electronics factory located in the Moscow region. The factory will be used to produce appliances for Chinese manufacturer Konka.
Last month, the St. Petersburg plant owned by Hyundai Motor, which was closed during the Ukraine crisis, was sold to Art-Finance LLC, a Russian firm. The sale was made on the condition of buy-back, which means that Hyundai can repurchase the plant after two years. Recently, the company restarted the plant after almost two years and plans to resume vehicle assembly by mid-year.
