Russia, China Eye Remaining Factory Assets in Post-Exit Phase

Russian and Chinese groups are showing renewed interest in keeping manufacturing capacity in Russia after major foreign players exited. Industry sources indicate that LG, Bosch, and Samsung have stepped back, leaving behind plants and assets that could be repurposed or reallocated under new ownership. The Ministry of Industry and Trade appears to be exploring strategies to localize production by bringing the exiting brands’ facilities into a domestic, more self-sufficient supply chain. Among the bidders or prospective lessees mentioned by market insiders are Russian firms Kuppersberg and Schaub Lorenz, together with the Chinese conglomerate Hisense. These players collectively command a small slice of the Russian home appliance market, with market share estimates under 3 percent. Their interest centers on acquiring or leasing existing production spaces to maintain manufacturing activity and preserve jobs while integration into the local economy proceeds. Kuppersberg in Russia is known for high-end kitchen fixtures, sinks, range hoods, ovens, refrigerators, and microwave ovens, with a specialization in built-in appliances. Schaub Lorenz has a long-standing history in television production. The actual manufacturing footprints of these brands are no longer confined to Russia and are dispersed across overseas facilities, notably in China and Turkey. Hisense, a Chinese player, supplies a broad variety of household appliances to the Russian market, occasionally under the Toshiba and Gorenje trade names through its distribution network. The Ministry of Industry and Trade has not disclosed any specific plans for purchasing capacity, but officials have stressed the importance of advancing high-tech industrial localization as part of a broader industrial strategy. Statements from the companies involved reflect a cautious stance: BSH Home Appliances LLC, which represents Bosch’s interests in Russia, declined to discuss rumors but acknowledged that unused capacity is being reviewed as part of strategic considerations. Spokespersons for Kuppersberg and Schaub Lorenz indicated that there have not yet been formal discussions with the exiting brands, though they noted ongoing conversations with authorities about potential localization options. Samsung likewise stated that there were no offers to buy capacity, and representatives from LG and Hisense were not willing to comment on the matter. Historically, the Russian manufacturing landscape has experienced disruptions tied to geopolitical events and sanctions. Before production in Russia paused in early March 2022, Samsung operated a Kaluga region facility that produced televisions, monitors, and washing machines. Bosch halted operations at its large plant in Saint Petersburg in March 2022 as a consequence of sanctions. LG had restricted deliveries into Russia and kept substantial assets, including a sizeable land area in the Dorohovo village and a factory spanning about 22,000 square meters. These assets, though currently idle or under review, represent potential anchors for future localization or reallocation depending on regulatory support and market demand. The broader context includes other reports that foreign manufacturers of building materials have reduced their presence in Russia by about 9 percent, signaling a trend toward domestic production intensification and investment in localized supply chains. Stakeholders across industry circles emphasize that the focus remains on preserving energy efficiency, technological standards, and consumer accessibility while balancing economic and political considerations. The evolving situation suggests a cautious but ongoing effort to maintain manufacturing momentum in Russia even as international partnerships adjust to new realities. The goal for policymakers is to align localization incentives with corporate risk management, ensuring that production capabilities can adapt quickly to shifts in demand, sanctions regimes, and currency dynamics. In summary, Russian and Chinese players are weighing options to occupy, lease, or acquire manufacturing sites left vacant by exiting international brands. While formal agreements have yet to be announced, the dialogue between industry ministries and potential buyers continues, underscoring a broader strategy to sustain industrial capacity and protect domestic employment through localized production in the post-sanctions environment.