Invest Plus, a Russian company, announced on Monday that it had successfully purchased IKEA’s largest production asset in Russia, the Novgorod factory. The Swedish furniture company had initially halted all retail and production activities in Russia following Moscow’s intervention in Ukraine in February 2014. Online sales briefly resumed last summer.
Invest Plus, which is beneficially owned by CEO and co-owner of Slotex, Vadim Osipov, is a special purpose vehicle (SPV) that recently acquired the Novgorod factory. Slotex is a leading domestic producer of laminates and kitchen worktops.
The sale of the IKEA factories in Russia, including those in Tikhvin, Novgorod, and Vyatka, was announced by brand owner Inter IKEA Group. Sales by Western companies in Russia have been complicated as deals involving firms from so-called unfriendly countries require approval from a government commission.
Despite the challenges, Invest Plus was able to purchase the Novgorod factory. Osipov expressed his gratitude to IKEA, Russian and Swedish regulators, and Russia’s Ministry of Industry and Trade, for their support throughout the deal’s lengthy and difficult process.
Invest Plus stated that it would maintain the factory’s workforce for at least one year and resume full production within the next two to three months. The company aims to revive the highly popular and quality production of the Novgorod factory in Russia’s furniture market as soon as possible.
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