Chinese home appliance maker Hisense is expected to buy two of the German company’s enterprises in Russia
© Global Look Press / Fabian Sommer
Bosch’s two idle manufacturing sites near St. Petersburg are set to be purchased by Chinese household appliances manufacturer Hisense, Russian business daily Kommersant reported on Monday, citing sources close to the matter.
The German multinational previously said that Ukraine-related sanctions had either interrupted most of its business in Russia, or brought it to a standstill for many months.
Hisense has already purchased some Russian assets belonging to Bosch, one of the sources told the media.
Bosch reportedly announced an internal tender earlier this year, with Hisense and another Chinese appliance maker, Midea, as well as an unnamed Turkish investor, emerging as potential bidders.
“But it was Hisense that was developing joint projects with Bosch around the world,” the sources said, adding that the Chinese manufacturer offered “the most convenient buyback terms.”
The German corporation used to produce refrigerators and washing machines at its two production sites in the suburbs of St. Petersburg. Bosch’s Russian division received most of its components from EU countries.
Last August, Kommersant reported that the company was mulling sale of the facilities. Back then, the working factories were valued at up to €75 million each. However, after a year of stoppage the price could be significantly reduced. Additionally, a recent Russian law requires companies from ‘unfriendly’ nations such as Germany to sell their assets at half the market value.
Anti-Russia sanctions have forced the largest manufacturers of electronics and household appliances, including LG, Samsung, Panasonic, Electrolux and Apple, to suspend their activities in Russia and limit supplies.
Bosch owned seven production facilities in Russia in the Saratov, Samara and Leningrad Regions. Factories near St. Petersburg have been idle since March 2022.
In April, the German corporation said it had sold manufacturing and administration facilities at one of its sites in Russia to the local holding company S8 Capital, which was planning to rebrand the facilities within six months.
For more stories on economy & finance visit RT’s business section
