MOSCOW (Pakistan Point News / Sputnik - 26th December, 2022) The deal on the purchase of Swedish furniture maker IKEA factory in Novgorod is at the final stage and is expected to be completed by the end of the first quarter of 2023 with potential investors have already visited the factory and got acquainted with its facilities, Novgorod Region Governor Andrei Nikitin told Sputnik.
"The deal is at the final stage. Negotiations are going on now, there are several specific interested parties. The decision should be taken by the headquarters of this company, which, as you understand, is outside Russia, and then the transaction will be coordinated at the level of the Russian Ministry of Industry and Trade, where the final decision will be made," Nikitin said.
The governor did not name potential investors, but said that they have already visited the facility.
"I can only say that all potential investors have been to the factories, got acquainted with everything. In November and December, the plant even ran in test mode to show potential buyers the current capacity of the enterprise. We expect that the deal on the purchase of the plant will be completed by the end of the first quarter of 2023," the governor added.
Production at the factory in Novgorod can be relaunched very quickly after its sale to a new investor, Nikitin said.
"Here we need to understand that our factory is universal, and we can say that it is the basis for the furniture production, and the design can be anything, not only for IKEA. Of course, I do not deny it, I myself am worried, it is important for me to have a good investor who will approach the issue seriously," Nikitin added.
In early September, media reported that IKEA factories in the Russian cities of Tikhvin and Novgorod, which were idle, resumed their work within the framework of pre-sale preparation.
In early November, IKEA started removing its logo from the products made at its factories in Russia. The Swedish furniture giant plans to complete the sale of its four factories in Russia by the start of next year.
IKEA has been winding up its operations in Russia since March 2022, amid Moscow's military operation in Ukraine, and has reduced staff at its manufacturing facilities in Russia.
The company also said that it expects to sell its assets in Russia by 2023.
