Kommersant: Haier liquidates the Candy legal entity in Russia

The Chinese manufacturer of household appliances Haier Group has decided to liquidate the Russian legal entity Kandi S.N.G. About it reports Kommersant, citing a source close to the Russian representative office of Candy.

The interlocutor claims that the company’s head structure made this decision due to the “low profitability” of the Russian legal entity. He also recalled that the production of Candy household appliances in Kirov was suspended, since the plant was also supposed to work for Europe.

According to him, before the start of Russia’s special operation in Ukraine, it was planned to assemble up to 1 million units of equipment per year at the enterprise, but after the introduction of sanctions, production was reduced to no more than 300,000–400,000 units. The source clarified that during the liquidation, some employees will be fired, others will be transferred to Haier.

Kommersant, citing data from SPARK-Interfax, writes that the revenue of Kandy S.N.G. LLC in 2022 amounted to 10.8 billion rubles, net profit – 455 million rubles. The publication’s interlocutor among household appliance manufacturers says that the company’s revenue in 2023 “decreased significantly, which led to a loss.”

In April Candy suspended the work of the plant in Kirov, Kommersant previously wrote. Then the source claimed that the reason was overstocking, lack of demand and increased exchange rates. In particular, because of the latter, the company lost 15% of its profits, he said.

The Candy plant in Kirov employs 546 people; its capacity allows it to produce more than 2,000 washing machines per day, according to Vesta’s website. The plant is mass producing 192 models of washing machines and washer-dryers. The key brands are Candy and Hoover. It is clarified that Candy household appliances have been produced at the plant since 2005. In 2018, the enterprise was transferred to the Haier Corporation.