(AOF) – Delfingen Industry announced on March 25 the suspension of its activities in Russia operated in its factory in Nizhny Novgorod. The specialist in protection and routing solutions for on-board electrical and fluid networks then initiated a process of selling its Russian entity to local management. This transfer is effective as of this Monday following the lifting of all the conditions precedent.
The sale price will be donated in full by Delfingen to its Corporate Foundation, which works around 5 pillars which are access to decent housing, disability compensation, access to health and education and preservation of the environment.
As a reminder, the Nizhny Novgorod site joined the Delfingen group on September 1, 2020 following the acquisition of Schlemmer. It has 60 employees with an annual turnover of around 6 million euros for the 2021 financial year, i.e. around 1.6% of the group’s overall turnover.
Delfingen recalled that this transaction will impact the results of the first half of 2022 with a non-cash adjustment charge corresponding to the contribution of the Russian entity to the group’s equity. This amounted to 2.4 million euros as of December 31, 2021.
AOF – LEARN MORE
Lowered targets
Due to shortages, manufacturers’ assembly lines must sometimes stop, affecting the activity of equipment manufacturers, who supply them with just-in-time flows. Added to this is the jump in the price of raw materials and energy, deteriorating margins. Several equipment manufacturers, including Plastic Omnium and Forvia (formerly Faurecia), had thus lowered their outlook for 2021.