Valeo Sells Russian Powertrain Unit to NPK Avtopribor
Valeo, the automotive component manufacturer, has entered into an agreement to sell the entire production footprint of its Powertrain division in Tolyatti, Russia, to the company NPK Avtopribor. The transaction is subject to customary regulatory clearances and is expected to close after those approvals are obtained, according to Valeo’s press release communicated by its service team.
The deal secures employment for 158 workers at the Tolyatti site, with a continuation plan that preserves the majority of the current workforce. The agreement also includes an option to repurchase the assets between 2029 and 2033, offering Valeo potential strategic flexibility in the future. Valeo noted that the sale will be non-profit for the company and will not cause a financial loss, highlighting that assets totaling €43 million were depreciated in 2022. It was stressed that Valeo’s business in Russia accounts for less than 1% of the company’s global sales, underscoring the relatively limited impact on overall performance from this regional portfolio as of today.
Industry observers recall that the earlier announcement also referenced this plant, which has been associated with the production of autocatalysts for a significant segment of the regional automotive market. The current transaction aligns with Valeo’s broader strategy to optimize its global footprint while retaining positive ties with its Russian operations through orderly divestment and ongoing support for employees involved at the site. As with similar strategic moves, regulatory approvals will shape the final timeline and the post-sale operating model for the Tolyatti facility. The firm behind the buyer group, NPK Avtopribor, is positioned to continue the plant’s production discipline and quality standards under new ownership, as reported by Valeo’s corporate communications team. Whole teams and processes are expected to transition to the new ownership with minimal disruption to customers and suppliers who rely on the plant’s outputs. — Valeo press service