KONE Corporation, a global leader in the elevator and escalator industry, will divest its business in Russia to local management. The 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 value of the planned transaction is not disclosed.
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 approximately 650 people in Russia, serving approximately 1500 customers.
For further information, please contact:
Scott McMahon, Senior Communications Manager, KONE Corporation, tel. +358 50 356 0462, email@example.com
At KONE, our mission is to improve the flow of urban life. As a global leader in the elevator and escalator industry, KONE provides elevators, escalators and automatic building doors, as well as solutions for maintenance and modernization to add value to buildings throughout their life cycle. Through more effective People Flow®, we make people's journeys safe, convenient and reliable, in taller, smarter buildings. In 2021, KONE had annual sales of EUR 10.5 billion, and at the end of the year over 60,000 employees. KONE class B shares are listed on the Nasdaq Helsinki Ltd. in Finland. www.kone.com
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