Emerson to sell Russian business, with Metran plant, to local management
CHELYABINSK. Sept 28 (Interfax) - Emerson intends to sell its business in Russia, including the country's leading manufacturer of process automation equipment, Chelyabinsk-based Metran Industrial Group, to local management, the U.S. engineering company said on Tuesday.
"Emerson today announced an agreement to sell its Russia business, including Metran, its Russia-based manufacturing subsidiary, and Emerson LLC in Russia, the sales and service organization for Metran, to the local management team," the company said in a press release.
The deal is subject to approval by regulators and the government.
"Emerson will work closely with the local Russia management team to help ensure a smooth transition for employees through the process," the company said.
JSC Metran Industrial Group has been headed by Anton Druzhinin since January 2021, data from the Unified State Register of Legal Entities showed. He also owns 50% of Metran Holding LLC (business and management consulting) and Metran Proyekt (wholesale trade, and manufacturing of electrical equipment, machinery, hardware and materials). Both of these firms were incorporated on August 12, 2022.
The other 50% stakes in Metran Holding and Metran Proyekt are owned by Nikolai Shestakov, CEO of Emerson LLC.
As part of the Russia exit announced on May 4, Emerson included a pre-tax loss of $162 million in the third quarter of fiscal 2022. Emerson's sales in Russia, consisting primarily of automation solutions, accounted for about 1.5% of total sales in fiscal 2021, the company said.
Emerson Electric acquired sole ownership of Metran Industrial Group in 2009. In 2015, the company opened a manufacturing and office complex in Chelyabinsk at a cost of $40 million and announced plans to build a second phase. Metran moved to the new facilities with its production lines.
In 2016, the plant in Chelyabinsk launched a production line that made it possible to localize manufacturing of ControlWave Micro controllers, and in 2018 it started production of Coriolis flow meters and solenoid valves.
Metran reported a net profit of 1.306 billion rubles in 2021 on revenue of 6.472 billion rubles, up from 357.25 million rubles and 5.566 billion rubles, respectively, a year earlier.
The company has a separate division in St. Petersburg, offices in Irkutsk Region and Perm Territory, as well as the subsidiary Metran Export LLC in Chelyabinsk.
Emerson LLC closed 2021 with a net profit of 241.1 million rubles on revenue of 9.8 billion rubles, down from 592.2 million rubles and 10.4 billion rubles, respectively, in 2020.