Bosch to suspend manufacturing appliances in St. Petersburg in March - the company

MOSCOW. March 15 (Interfax) - Germany's Robert Bosch will be suspending the manufacturing of household appliances in St. Petersburg in the near future because of the halt in supplies from Europe, Bosch's Russian representative office has told Interfax.

The representative office noted that Bosch is carefully reviewing the consequences of sanctions acts and, as a European company, is obligated to comply with the legal requirements of the European Union.

"Because of this, we have interrupted part of our supplies to Russia. BSH Household Appliances LLC reports that the supply of household appliances and manufacturing materials from the European Union to Russia has been temporarily suspended. Owing to the suspension in deliveries, the factories in St. Petersburg will be forced to cease production temporarily as soon as the existing stocks of manufacturing materials have depleted, which is expected in mid-March," the company said.

Meantime, the service department of the household appliances division continues operating in Russia, including providing spare parts not affected by the suspension in supplies.

"The Robert Bosch factories in Engels are currently operating to fulfill existing orders," Bosch added.

The company emphasizes that its expert teams are in close contact with suppliers, sub-suppliers, and customers. "The long-term political and economic implications are unclear. However, it is clear that we can expect significant consequences for our operations throughout the region and beyond. We are preparing for possible scenarios and constantly assessing the unstable situation in order to be able to take the necessary measures," the Bosch representative said.

The BSH subsidiary manufactures refrigerators and washing machines in Russia. Total capacity of the two factories in the village of Strelna near St. Petersburg exceeds 1 million household appliances per year. BSH Home Appliances also promotes, sells and provides services on the Russian home appliances market for four brand names belonging to the BSH group, including Bosch and Siemens, as well as Gaggenau and Neff specialized brands of built-in appliances.

According to data in the SPARK-Interfax analytical system, the company boosted revenue 8% year-on-year to 42.2 billion rubles in 2020.

Steffen Hoffmann, president of Bosch in Russia, Ukraine, Belarus, Central Asia, Mongolia and the Caucasus, told Interfax in early February that revenues for the company's regional division in 2021 were 1.6 billion euros, a rise of 19% year-on-year.