Kingspan sells Russian business while Kerry suspends operations
Insulation maker Kingspan sold its Russian business at a loss while food and ingredients specialist Kerry Group suspended operations there and in neighboring Belarus.
Both maintained that they had worked to end or suspend their operations in Russia shortly after its invasion of Ukraine.
Kingspan confirmed on Monday evening that it had exited the Russian market and sold its business there to local management. It is understood that the Cavan-based multinational faces a small loss on the deal.
Kerry said it was suspending operations in Russia and Belarus following consultations with stakeholders.
“This suspension will be managed in an orderly manner, during which the company will continue to pay employees and meet our legal obligations,” a company statement noted.
Kingspan said he decided to leave Russia in early March, shortly after the invasion.
“It took several weeks to ensure it could be completed in an orderly fashion, with the safety and well-being of our staff being a key priority,” the company said.
Kingspan will no longer sell its products in Russia, which represents less than 1% of its overall business.
Kerry said the escalating humanitarian crisis was horrific and she had reduced her activities in Russia and Belarus in recent weeks.
Donation to UNICEF
Kingspan said “we have donated $750,000 to Unicef to set up five Blue Dot Centers to help refugees on the Ukrainian border and we are also providing additional local support.”
Last week, Dublin-based paper packaging giant Smurfit Kappa said it had decided to exit the Russian market.
“This exit will take place in an orderly manner, during which we will continue to pay our employees and meet our legal obligations,” Smurfit Kappa said. “Our Russian business represents less than 1% of planned sales.”
A company spokeswoman said it had around 800 employees in Russia and said they would be paid until the end of the exit.
The company has three factories in and around St. Petersburg and also bought a corrugated cardboard packaging factory in Moscow in 2017. It was aiming for significant growth in Russia before the invasion and the country was hit with sanctions.
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