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Refrigerator manufacturer stops production in east Ukraine Donetsk city

Ukrainian manufacturer of refrigeration equipment PJSC "Nord" announced that it stops production from August 1.
Refrigerator manufacturer stops production in east Ukraine Donetsk city

PJSC “Nord” is currently registered in Ukraine-controlled Kramatorsk town, but production facilities of the company are located in Donetsk city under control of the self-proclaimed “Donetsk People’s Republic”, Joinfo.ua reports with reference to Interfax-Ukraine.

A month ago, head of “DPR” Aleksandr Zakharchenko declared a “nationalization” of Ukrainian property. As a result, the largest Ukrainian manufacturer of refrigeration equipment PJSC “Nord” stops production from August 1 and conserves the fixed assets of the plant in Donetsk.

The decision was made by the Supervisory Board of PJSC “Nord” due to the inability to maintain production activities.

“At a time when PJSC “Nord” is not just unable to control, but can not even provide factors for normal functioning [of the plant], production activity is impossible; the only rational solution is the preservation of plant and equipment at the production site in Donetsk,” – the board said in a statement.

The Supervisory Board of PJSC “Nord” is headed by Andriy Landyk, which owns approximately 19.7% of the shares. About 80% of the shares are owned by his father, the president of “Nord” Valentyn Landyk.

PJSC “Nord” is the parent company of the group of companies “Nord” – an integrated research and production association of machine-building factories and organizations.

In 2015 PJSC “Nord” produced 162.781 refrigerators and freezers and sold 162.827 of them. That was respectively 52.1% and 52.3% less than in 2014.