KONE to Divest Operations in Russia

KONE will divest its operations in Russia to local management, with the deal — the terms of which were not disclosed — expected to close in the fourth quarter, KONE announced on June 28. “The plans for local ownership and operations will provide a more sustainable long-term solution for employees and customers,” the company observed. As part of the deal, KONE has agreed to supply spare parts to Russia for a transition period of three months. Going forward, the business will operate independently under a different brand. The plan follows KONE’s announcement earlier this year that it had temporarily ceased deliveries and new orders in Russia in light of its miliary actions against Ukraine. Accounting for less than 1% of KONE’s global sales, KONE employs approximately 650 people in Russia serving roughly 1,500 customers.