American elevator manufacturer Otis is selling its business in Russia. This is stated in the company's report for the second quarter of 2022.
The business will buy out the Russian holding S8 Capital of Armen Sargsyan. The amount of the transaction is not disclosed.
The Ministry of Industry and Trade said that Russian Otis enterprises will resume work and begin taking orders on August 1. According to the head of department Denis Manturov, negotiations on the sale of the company's Russian business were lengthy:
“As a result of lengthy negotiations, we managed to reach a format in which the Russian site remains fully operational: production equipment, technology remain, competencies and jobs are preserved. In addition, the terms of the deal guarantee the continued supply of necessary spare parts.”
According to the National Elevator Union, as of 2021, Otis' share of the Russian elevator market was 16% (7,295 elevators). The company ranked second in production among all manufacturers in the market. The first place is occupied by the Shcherbinsky Elevator Plant with 20% of the market (9193 elevators). The third and fourth places are occupied by the Finnish Kone and the Swiss Schindler. Their shares are much smaller – 3% (1132 elevators) and 0.7% (343 elevators), respectively.