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reported citing the chairman of Luzales Ruslan Semenyuk. Swedish furniture major IKEA previously said it would scale down its business in Russia, lay off employees, sell off inventory and start looking for buyers for its four Russian plants in the Leningrad, Kirov and Novgorod regions. Notably, the assets were sold to minor players, while previously such bidders as timber and paper major Segezha Group (subsidiary of multi-industry investment conglomerate AFK Sistema) and Russia's largest developer PIK were named among the bidders. Such unexpectedly small and unknown bidder - Luzales - acquired IKEA's two main production sites specialising in furniture and lumber production. The remaining IKEA production assets in the Novgorod region, were acquired by Slotex, a company specialising in the production of facades and kitchen countertops. Luzales was founded in 1999 by Ruslan Semenyuk's father, Nikolay Semenyuk (died in 2018). The company specialises in logging, export of timber products, deep processing and sale of finished products. In particular, the company produces floorboards, planks, logs and Euro linings.
New owner of the plant of Swedish furniture retailer Ikea in Nizhny Novgorod plans to relaunch full-scale production in two to three months, Invest Plus, whose beneficiary Vadim Osipov became the plant owner, said on March 27. He will keep the number and terms of employment for the staff of Ikea Industry Novgorod for at least a year. Full-scale production is to be relaunched on the premises in Novgorod in the next two to three months.
The Auchan retail chain is continuing its operations in Russia and has no plans to change its strategy, the company’s press service told TASS on March 25. "Auchan Retail Russia is continuing its operations in the Russian market and does not plan any changes either in its strategy or in the organisation of its work," the retailer stated. Auchan operates in Russia on a standalone basis, without receiving investments from the parent company, it added.
French retailer Auchan is set to increase its presence in Russia by opening a new store that will primarily sell private label products, Reuters reported on March 13. The move comes as Western retailers have cut ties with the Russian market and either shuttered their stores or sold to their local management or entrepreneurs. The new store, called 'My Auchan', will offer a selection of approximately 900 items, with 90% of these being food products sold under Auchan's own brand. Despite calls for a boycott by Ukraine, Auchan Retail Russia has decided to maintain its operations in Russia, highlighting the company's confidence in the market.
Dutch beer producer Heineken has allowed the Russian division to launch local products to prevent bankruptcy ahead of the sale of the business, the company said in a statement on March 8. Newspaper Follow the Money accused the company of continuing activities in Russia by launching new products.
191 RUSSIA Country Report Russia April 2023 www.intellinews.com