Finnish food packaging manufacturer Huhtamaki has decided to initiate the process to divest its operations in Russia. This follows an earlier decision to stop all investments in Russia at the outbreak of the invasion of Ukraine. Huhtamaki considers that the current evolution of the situation and the long-term outlook in Russia will prevent the realization of its growth strategy and long-term ambitions in the country. Huhtamaki will continue to prioritize investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.
Huhtamaki has four manufacturing units in Russia, employing approximately 700 people and has successfully supported global and local customers over the last 30 years. The net sales in Russia represent approximately 3% of the Group’s total net sales.
Huhtamaki will explore the market for potential buyers and will maintain its operations during this transitional period, subject to supply chain availability, to meet its contractual and regulatory obligations and to safeguard employees and customers.
Smurfit Kappa Group plc has decided to exit the Russian market. The Group has already suspended support for its Russian operations including any imports and exports and any short or long term funding.
“This exit will be effected in an orderly manner, during which we will continue to pay our employees and fulfil our legal obligations. Our Russian business represents less than 1% of forecasted sales,” the Company said in the press release.
Smurfit Kappa is a leading company in the production of paper-based packaging.