A major Chinese home appliance manufacturer has decided to close its Russian plant
The company was supposed to work for the European market, but became unprofitable due to sanctions
China's largest home appliance manufacturer Haier has decided to liquidate the Russian legal entity of the Italian brand Candy, which it owns. The plant in Kirov, Russia – Vesta JSC – is going to be closed due to low profitability, and production has already been halted, a source told Kommersant.
According to him, the company was originally supposed to work for the European market – it was supposed to produce up to 1 million units of equipment per year.
However, due to the beginning of Russia's invasion of Ukraine and sanctions, production dropped to 300-400 thousand units. The publication's source notes that in 2023, Kandy S.N.G. LLC's revenue dropped significantly, which caused losses.
During the liquidation of the plant, some employees will be laid off and some will be transferred to Haier. Since this production facility has outdated lines, it can be sold for the price of real estate or go bankrupt.
It was reported back in April that Candy had suspended the Kirov plant due to low demand and the currency appreciation. However, the Ministry of Industry of the Kirov region denied this, assuring that production continued as usual. At that time, the company employed 546 people.
Background. Today it became known that the United States imposed export sanctions against Russian titanium producer VSMPO-Avisma and 27 other companies.
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