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Finland-based sustainable packaging provider Huhtamaki has decided to divest its Russian operations as the country’s invasion of Ukraine continues.
The company operates four manufacturing units in Russia, with approximately 700 employees serving global and local customers over the last 30 years.
Huhtamaki’s Russian business represents approximately 3% of the group’s total net sales.
The announcement comes after the company suspended all investments in Russia in response to the geopolitical situation.
The company in a statement said: “Huhtamaki considers that the current evolution of the situation and the long-term outlook in Russia will prevent the realisation of its growth strategy and long-term ambitions in the country.
“Huhtamaki will continue to prioritise investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.”
In line with the announcement, Huhtamaki will seek for suitable buyers in the market.
The company will continue its operations throughout the transitional period to meet its contractual and regulatory obligations, as well as to ensure safety of its employees and customers.
However, the operations will be subject to supply chain availability.
Earlier this month, Irish corrugated packaging company Smurfit Kappa decided to exit the Russian market.
Paper and packaging company Mondi also revealed last month that it was considering all options for the group’s interests in Russia, including legal separation.
Last month, Huhtamaki increased production of smooth-moulded fibre (SMF) packaging in Europe to meet increasing demand for plastic-free food packaging.