RPT - IKEA Furniture Factory Sale In Russian City Of Novgorod To Happen In Early 2023 - Governor

MOSCOW (UrduPoint News / Sputnik - 27th 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 already visited the factory and got acquainted with its facilities, Governor of the Novgorod Region, 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 also said.

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 am worried myself, it is important for me to have a good investor who will approach the issue seriously," the official added.

In early September, media reported that non-operating IKEA factories in the Russian cities of Tikhvin and Novgorod resumed their work within the 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.

IKEA was founded in Sweden in 1943. The company sells its own ready-to-assemble furniture, kitchen utensils and various home accessories. IKEA has been the world's largest furniture retailer since 2008.