Kone divests its operations in Russia

Kone Corporation will divest its business in Russia to local management.

The share purchase agreement with local management is subject to approval by the relevant regulatory authorities in Russia and is expected to close during the fourth quarter of 2022. The value of the planned transaction is not disclosed.

The plans for local ownership and operations should provide a more sustainable long-term solution for employees and customers, says the company.

Independently under a different brand

Following the closing of the deal, the business will operate independently under a different brand. As part of the proposals, Kone has agreed to deliver spare parts to Russia for a transition period of up to three months after the closing.

The plans follow Kone's announcement earlier in the year that it had significantly reduced business activities in Russia, temporarily ceasing deliveries and not signing new orders, as a result of Russia's military actions against Ucraine. Russia accounts for less than 1% of Kone's global sales and the company currently employs approximately 650 people in Russia, serving approximately 1,500 customers.  

More information: kone.com