Iran intends to localize the production of household appliances in Russia

Iranian manufacturers of household appliances intend to localize production in Russia, writes Kommersant newspaper with reference to market participants.

According to the founder of Smart Solutions and ex-manager of Vestel Huseyn Imanov, Iranian suppliers are negotiating the purchase or lease of LG production sites and Samsung in the Russian Federation. This is confirmed by the general director of the manufacturer of household appliances Kuppersberg, Dmitry Shashkin, noting that in Iran, protective duties on all equipment reach 100%. This, he added, allowed them to develop the production of stoves, refrigerators, etc., but the reduction in consumer choice “affects the quality control of products.”

Holodilnik.ru told the newspaper that two Iranian companies approached them to promote their brands. Their prices are higher than their Chinese counterparts, since “the components remain imported,” they added.

According to Imanov and three other sources of the publication, the Ministry of Industry and Trade issued an “ultimatum” to LG and Samsung: they must either resume production in the Russian Federation or sell it to interested companies. The Ministry of Industry and Trade of the Russian Federation, commenting on these data, stated that it is interested in maximum utilization of all available production capacities in the country. Against this background, Iranian suppliers have a chance to gain access to production facilities in Russia on attractive terms, the newspaper notes.

After the start of the special operation, the largest manufacturers of electronics and household appliances suspended their activities in Russia and limited supplies. In particular, this decision was made by LG, Samsung, Bosch, Panasonic, Electrolux, Apple, etc. In total, Bosch had seven production facilities in the Russian Federation – in the Leningrad, Saratov and Samara regions. Factories near St. Petersburg have been idle since March 2022.

As Vedomosti previously wrote, the popularity of Turkish household appliances is growing in Russia. The most popular Turkish brands on the Russian market are Beko, the former German brand Grundig, purchased by the Arcelik concern, as well as large manufacturers Vestel and Simfer, according to M.video-Eldorado analysts. Beko became the third most popular washing machine brand, although a year earlier it was in sixth place. Beko entered the top 5 for refrigerators.