Chinese home and climate appliance giant Midea Group has finalized the relocation of its manufacturing operations from Russia’s Tatarstan region to Belarus. The company’s new assembly facility is now up and running within the Brest Free Economic Zone, boasting a planned output capacity of up to 1 million refrigerators annually.
Midea initially launched its production presence in Russia with a plant in Alabuga, Tatarstan. However, recent developments have impacted its operations in the region, as its local partner, Continent Production Solutions PLC, is currently facing bankruptcy proceedings. The move to Belarus marks a strategic pivot for Midea, reinforcing its commitment to maintaining a strong manufacturing foothold in Eastern Europe.
Tag Archives: Russia
Gazprom shifts gears: From gas exports to home appliances
Gazprom, the Russian gas giant, is planning to produce washing machines and refrigerators at the former Bosch plant near St. Petersburg. This move comes as a response to the decline in gas exports to Europe and the absence of a new contract with China. Production is expected to commence later this year
Russian appliance market
The ongoing global conflict significantly impacted the Russian appliance market in 2022, with a 35% contraction following the departure of major international brands. However, the market demonstrated remarkable agility, nearly fully recovering by year-end as local players filled the void. Production shifted, with some international facilities changing hands while others increased local output, strengthening ties with China.
Despite volatile exchange rates, soaring freight costs, and payment challenges, the Russian MDA/BIA market reached 18.2 million units (5.51 billion EUR) in 2022, fueled by pent-up demand. In 2023, the market saw unit and Ruble growth as conditions somewhat stabilized. However, EUR volume remained flat.
2024 brought increased payment complexities, resolved through intermediaries for China and Ruble payments for Turkey. The market continued its unit growth, maintaining stable EUR volume, showcasing unexpected resilience.
However, 2025 has begun with a sales downturn despite a better exchange rate, potentially due to global political uncertainties.
Despite sanctions, the Russian market has shown surprising stability and modest growth. Gray market imports continue to supply demand for well-known brands, and some major players are considering or have already re-entered the market.
In conclusion, the Russian appliance market has proven surprisingly resilient due to local adaptation, new trade dynamics, and persistent demand met through various channels. While future uncertainty remains, its performance highlights its adaptability
Bosch factory Russia
Bosch’s two idle manufacturing sites near St. Petersburg are set to be purchased by Chinese household appliances manufacturer Hisense, German multinational previously said that Ukraine-related sanctions had either interrupted most of its business in Russia, or brought it to a standstill for many months.
Hisense has already purchased some Russian assets belonging to Bosch, one of the sources told the media.
Bosch reportedly announced an internal tender earlier this year, with Hisense and another Chinese appliance maker, Midea, as well as an unnamed Turkish investor, emerging as potential bidders.The German corporation used to produce refrigerators and washing machines at its two production sites in the suburbs of St. Petersburg. Bosch’s Russian division received most of its components from EU countries.
Electrolux Professional sells Russia business to local management
Sweden’s Electrolux Professional is selling its business in Russia to its local management and leaving the country, the company said on Monday.
“As a result of the continued war and sanctions, we foresee that we will not be able to sell and service products in Russia in the medium to long term,” the maker of appliances for professional use said in a statement.
“Following the assessment that business continuity in Russia, in the current situation, is not feasible, Electrolux Professional is to cease its operations in the country,”
WHITEGOODSNOW 