"Samsung Electronics Russia Factory, Possibility of Leasing to Local Companies"

Russian Media Report on the 23rd
Operations Halted for 2 Years Due to War Impact
Samsung Electronics Draws a Line on Sale

Due to the aftermath of the Russia-Ukraine war, there are reports that Samsung Electronics' Kaluga plant in Russia, which has been shut down for two years, may be leased to a local company. Samsung Electronics stated, "We are considering leasing rather than selling."

Russian media Kommersant reported on the 23rd (local time), citing multiple sources, that Russian home appliance distributor VVP Group may produce electronic products at Samsung Electronics' Kaluga plant near Moscow.

Samsung Electronics Kaluga Factory in Russia. [Photo by Samsung Electronics Newsroom]

Earlier, on the 9th, Han Jong-hee, Vice Chairman and CEO of Samsung Electronics and head of the DX (Mobile, TV, Home Appliance) division, said at the CES 2024 press conference held in Las Vegas, USA, "At this stage, we have no intention to sell, and we are aiming to lease it out," just two weeks ago.

According to the report, VVP Group plans to purchase or lease the TV production line at this plant. It is said that they will produce their own brand and other companies' products, and plan to manufacture washing machines in the future. A Samsung Electronics official said, "We are considering the leasing option."

Samsung Electronics has been manufacturing TVs, refrigerators, and washing machines at the Kaluga plant since its completion in 2008. In February 2022, when the Russia-Ukraine war broke out and Western sanctions against Russia began, the company announced a suspension of operations in March of the same year due to issues with parts supply.

Kommersant previously reported last month, citing sources, that electronics distributor DNS is negotiating to lease LG Electronics' Moscow plant to produce products for the Chinese home appliance company Konka. Hyundai Motor's Saint Petersburg plant was also sold last month to Russian company Art Finance under a buyback condition that allows the plant to be revived after two years. This plant recently resumed operations aiming to restart vehicle assembly by mid-year.

This content was produced with the assistance of AI translation services.