MOSCOW, July 27, 2010 (FBC) Elevator maker Otis Worldwide Corp. (OTIS.N) announced on Wednesday that it has agreed to sell its Otis Russia business to Russian investment company Ice Development.
“After careful consideration of the global impact and consequences, including the ongoing crisis and humanitarian tragedy in Eastern Europe, supply chain disruptions and increased regulations, we have determined that our ownership of Otis’ business in Russia is unsustainable,” Otis said in a statement. .
Moscow
In March, Otis stopped investments and took new equipment orders in Russia, and said that the sale will provide more certainty to local colleagues, customers and Otis shareholders.
“The deal is expected to close shortly, subject to customary closing conditions,” Otis said. “Upon transfer of ownership, Ice Development expects to continue full production under the new brand name at the Otis St. Petersburg manufacturing facility.”
That facility can produce up to 7,000 elevators a year, the Russian Industry and Trade Ministry said, adding that Otis has the widest service network in Russia.
The minister stated that the company S8 Capital has completed the acquisition. He said the difference between S8 Capital and Snow Development is technical. S8 Capital said Snow Development was a company in its portfolio.
Industry and Trade Minister Denis Manturov said the agreement was of general importance to the industry and that production equipment, technologies, skills and jobs remained intact as a result of the long negotiations.
“Furthermore, the terms of the agreement guarantee the continued supply of necessary spare parts,” Manturov said.
Otis, which reported second-quarter results on Wednesday, said its Russia business was excluded from the company’s 2022 outlook.
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Reuters report; Edited by Jan Harvey and Louise Havens
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