As previously announced, NCAB has stopped deliveries of printed circuit boards to customers in Russia.
After taking into consideration future opportunities and risks, NCAB has now decided to completely cease its operations in the country. NCAB does not consider that the Russian subsidiary has any value in the current situation and has decided to sell it to the local company management for 1 Ruble.
“We see no immediate solution to the Ukraine conflict, and in the long term see limited business potential and high risks in the Russian market. Our experienced and long-standing management has shown interest in acquiring the company. For NCAB, this means that the liquidation costs are minimized”, says NCAB’s President and CEO Peter Kruk.
The liquidation is expected to entail a write-down requirement of approximately SEK 40 million for NCAB, which will impact the result in the first quarter in 2022. In future, the sold company will not be able to use NCAB’s brand, nor will it be able to enjoy the support from NCAB’s Factory Management Team in China or any other parts of NCAB. The decision is not expected to have a significant impact on cash flow. Thereafter, no further obligations are expected to remain for NCAB in the Russian business.