Italian appliance company Candy Group bought Russian appliance maker Vesta in order to expand in Eastern Europe.
Candy bought the company, which owns the Vzyatka washing machine brand and the factory in Kirov for 15 million euros (approx. U.S. $18 million).
"This deal will allow our companies to enter all segments of the Russian market for small and large home appliances," Aldo Fumagalli said. He added that the Russian market had the potential to become a leader in Europe.
According to Candy, the Vesta factory, located in the northwest region of European Russia, will be renovated during the next several months to increase production capacity up to 250,000 washing machines per year, including more advanced models under the Vzyatka brand.
The chairman of the Vesta board, Sergei Savchuk, said a key goal of the factory was to reestablish contracts with Russian companies producing parts for washing machines.
Candy will also start selling Hoover floor-care products in Russia in order to cover all segments of the appliances market. Hoover sales account for more than 40 percent of the company’s total revenues. The company's net profit in 2004 increased 3 percent compared to 2003 to total 945 million euros (approx. $1.2 billion). (RIA Novosti, MosNews)
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