Govt commission approves sale of IKEA's Russian factories to Luzales, Slotex
ST. PETERSBURG/MOSCOW. Feb 16 (Interfax) - A Russian government commission on Wednesday approved the sale of IKEA's factories in Russia to St. Petersburg-based kitchen counter manufacturer JSC Slotex and Syktyvkar-based lumber producer Luzales LLC, the Industry and Trade Ministry told Interfax.
The approval of the sale was previously reported by Izvestia, which cited Deputy Industry and Trade Minister Viktor Yevtukhov.
Yevtukhov said that after the sale the factories will continue to operate and their products will be sold in Russian retail chains.
The terms of the sale have not been disclosed.
IKEA began winding down its business in Russia in March 2022. The Swedish furniture giant is liquidating its purchasing and logistics entities in the country, with inventories to be sold to Yandex Market. The group's manufacturing facilities were put up for sale last June.
This refers to a factory in Tikhvin, Leningrad Region, two in Veliky Novgorod and another in Krasnaya Polyana, Kirov Region. Due diligence of these assets was completed in November.
The IKEA Tikhvin union, citing a company statement, mentioned four potential buyers for the factories on its VK page, including Sistema PJSFC . Earlier media reports had said potential buyers included Tvoi Dom, Hoff and Kronospan, as well as real estate developer PIK Group, which officially denied plans to buy IKEA's Russian assets.
IKEA said in its report for financial 2022 that it expected to complete the sale of the four factories in Russia at the beginning of 2023.
Slotex president Svetlana Osipova was reported as saying earlier that the company was prepared to consider buying IKEA's furniture factories if the Swedish company made a final decision to sell its assets in Russia.
"Generally, we're in this sector, because IKEA is our client. We supplied our materials to IKEA [...] We might consider this option and expand production," Osipova told reporters on the sidelines of the St. Petersburg International Economic Forum last year.
Slotex, which began operations in 1990, develops and manufactures decorative plastic, furniture components and interior finishing materials.
Luzales, founded in 1999, is a leading logging and timber processing company in Komi, according to its website. The company's sole owner is Maria Semenyuk, according to the Unified State Register of Legal Entities.
Luzales intends to buy IKEA's plants in in Tikhvin in the Leningrad region and in the Kirov region, the Komi government press service of the told Interfax.
"The government commission has approved a deal to sell three IKEA plants in Russia. Two of them will be acquired by Luzales," it said.
A source in Novgorod region the government told Interfax that it was anticipated Slotex would buy the two IKEA factories in the region.
"It is Slotex that will become the future owner. We had a series of closed meetings, visited their companies. At the meetings, the management [of Slotex] gave guarantees that they would safeguard production and jobs in the Novgorod region, which satisfied us totally," the source said.