29 Mar 2023 09:19

Luzales aims to restart production at two former IKEA factories in Russia by summer

ST. PETERSBURG. March 29 (Interfax) - Luzales LLC, a lumber producer based in Syktyvkar, plans to relaunch furniture production at IKEA's former factories in Leningrad and Kirov regions "approximately by the summer," a company spokesman told Interfax.

Luzales said on March 24 that it had completed the acquisition of the two factories, IKEA Tikhvin in Leningrad Region and IKEA Vyatka in Kirov Region, from the Swedish furniture giant.

The company said that factories will manufacture furniture for educational institutions and goods that will be sold on marketplaces. Luzales did not disclose the financial terms, deadlines or other conditions of the deal.

Invest Plus LLC, which acquired IKEA's factory in Veliky Novgorod, plans to relaunch furniture production there in two to three months. Invest Plus is a special purpose vehicle controlled by Vadim Osipov, the CEO and co-owner of St. Petersburg-based Slotex Group.

Luzales, founded in 1999, is one of the leading logging and timber processing companies in Komi, according to its website. The company's sole owner is Maria Semenyuk, according to the Unified State Register of Legal Entities.