Gazprom pivots to appliance production amidst export slump
Gazprom, the Russian gas giant, plans to produce washing machines and refrigerators at the former Bosch plant near St. Petersburg. This move comes in response to the decline in gas exports to Europe and the absence of a new contract with China. Production is set to start later this year.
Gazprom, previously known primarily for its gas exports, is shifting its business focus. According to the "Moscow Times," the company plans to manufacture household appliances, including washing machines and refrigerators, at the facility near St. Petersburg, which was previously owned by Bosch.
This decision stems from a 60% decrease in gas exports to Europe and the lack of a new contract with China.
Production is expected to commence later this year, with the plant near St. Petersburg, transferred to Gazprom by Vladimir Putin, set to become a centre for household appliance production. Before the invasion of Ukraine, the factory produced over a million devices annually. However, challenges related to the lack of software licences might delay the start of production.
Vladislav Borodin from Gazprom revealed that the company had already produced a test batch of washing machines in 2024.
This new venture aims to assist Gazprom in coping with a record net loss in 2023, amounting to 629 billion rubles (CAD 9.6 billion). The production of household appliances is intended to address changing market conditions and the loss of key gas markets.
