KONE to close business operation in Russia

Finnish elevator and escalator company Kone will divest its business in Russia to local management, said the company in a press release on Tuesday.

The company hoped that plans for local ownership and operations will provide a more sustainable long-term solution for employees and customers.

The share purchase agreement with local management is subject to approval by the relevant regulatory authorities in Russia and is expected to close during the fourth quarter of 2022.

The company, however, did not disclose the value of the planned transaction.

Following the closing of the deal, the business will operate independently under a different brand. As part of the proposals, KONE has agreed to deliver spare parts to Russia for a transition period of up to three months after the closing.

The plans follow KONE's announcement earlier in the year that it had significantly reduced business activities in Russia, temporarily ceasing deliveries and not signing new orders, as a result of Russia's military actions against Ukraine.

Russia accounts for less than 1% of KONE's global sales and the company currently employs about 650 people in Russia, serving about 1500 customers.