Finnish Konecranes to liquidate Russian subsidiary after 30 years

MOSCOW. Feb 26 (Interfax) - The sole shareholder of Konecranes Demag Rus JSC (St. Petersburg, the Russian subsidiary of Finnish Konecranes) has decided to liquidate the company, its 2023 financials say.

"The sole shareholder of the company decided to voluntarily liquidate the company on February 2, 2024," the report says.

Konecranes Demag Rus JSC was registered in July 1993. The shareholder of the company is Konecranes Finland Oy (Finland).

Konecranes announced in the spring of 2022 that it would stop accepting new orders from Russia and intends to curtail its business in the country. The company's branches in Magnitogorsk, Novokuznetsk, Cherepovets, Vyksa (Nizhny Novgorod region) and Vladivostok closed down at the end of 2022.

As reported, after the termination of almost all contracts with Russian organizations in 2023, Konecranes Demag Rus returned advance payments to a number of marine terminal operators to whom it could not supply equipment, perform work or provide services.

Notes accompanying the company's 2023 financial statements say that, during the liquidation process, the company "plans to reach agreements to fulfill warranty obligations by paying compensation for remaining warranty service periods."

Konecranes Demag Rus revenues decreased to 701.4 million rubles in 2022 from 3.05 billion rubles in 2021. The company also recorded a loss of 167.7 million rubles in 2022 against a profit of 345.5 million rubles the year before.

Konecranes is one of the world's leading manufacturers of cranes and lifting equipment.