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Irish packaging giant Smurfit Kappa is leaving Russia

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Irish packaging giant Smurfit Kappa is exiting the Russian market.

The global group, which generated sales of 10.1 billion euros and a pre-tax profit of 913 million euros last year, has a plant in Moscow and two plants in St. Petersburg, which it acquired in 2017.

“The group has already suspended support for its Russian operations, including all imports and exports and all short or long-term financing,” the listed group said this morning.

“This exit will be done in an orderly manner, while we continue to pay our employees and honor our legal obligations,” she added. “Our Russian business accounts for less than 1 percent of forecast sales.”

Smurfit Kappa is led by CEO Tony Smurfit.

“Smurfit Kappa stands in solidarity with the people of Ukraine and everyone affected by the totally unjustified attack on Ukraine and its people,” the company said.

“The group provides and will continue to provide significant humanitarian assistance to the Ukrainian people,” she added. “We also support the families of employees and contractors of the Smurfit Kappa Group of Ukraine and provide products and services to support the relief efforts, as well as financial support for a number of charities. We have also partnered with the Red Cross to provide funds to support their vital work.”

Smurfit Kappa is a FTSE 100 company and has a market capitalization of €10.5 billion. It is one of the world’s largest packaging groups and employs 48,000 people at 350 production sites in 35 countries.

In 2017, it acquired the Moscow-based packaging company Soyuz.

This acquisition made Smurfit Kappa the largest international producer of corrugated packaging in Russia.

At the time, Smurfit Kappa described Russia as “an attractive growth market for us with exciting potential”. The company already had three sites in St. Petersburg producing paper-based and bag-in-box products for customers across Europe.

A number of western brands and retailers have exited the Russian market since its invasion of Ukraine.

https://www.independent.ie/business/irish-packaging-giant-smurfit-kappa-to-exit-russia-41510393.html Irish packaging giant Smurfit Kappa is leaving Russia

Fry Electronics Team

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