French manufacturer Valeo announced the sale of Russian business
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The French manufacturer of automotive components Valeo has signed an agreement to sell the Russian business to NPK Avtopribor. About it says in a company press release.
“As part of its decision to cease operations in Russia, Valeo announced today that it has signed an agreement with NPK Avtopribor to sell all of Valeo’s transmission systems assets in Russia,” the statement said.
The company clarified that the completion of the transaction will depend on obtaining permission from regulatory authorities. Under the terms, Valeo will have a buyback option within 10 years, which will be possible after six years.
Valeo stressed that the deal will save 158 jobs in Russia. “This sale will be made without any capital gain or loss. <…> Valeo’s sales in Russia previously accounted for less than 1% of the group’s sales, and the related assets were depreciated in 2022 for a total of EUR 43 million,” the company said.
The French group Valeo was founded in 1923 and specializes in the production and supply of automotive components and spare parts. In 2011, the company opened production in Togliatti, in April 2018. announced on the expansion of production for 17 million euros.
According to the website of NPK Avtopribor, the enterprise is located in Vladimir and is the first plant in Russia for the production of auto components. The company produces more than 500 items of products for both domestic and foreign automotive industry.
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