Understand the impact of the Ukraine conflict from a cross-sector perspective with the GlobalData Executive Briefing: Ukraine Conflict

European glass packaging manufacturer Vetropack is cutting jobs at its manufacturing plant in Gostomel, Ukraine, due to the impact of Russia’s invasion of the country.

The company said that the continuous military activity has damaged the plant’s production facilities and the overall situation is preventing it from resuming operations.

Vetropack will reduce the facility’s workforce by two thirds from its current number of around 600.

The firm has already released all the plant’s employees from work on a temporary basis after suspending production at the site when Russia’s invasion began in February.

All the employees were released on full pay.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Vetropack CEO Johann Reiter said: “We are aware of the impact this step will have on our employees in Ukraine – but we see no alternative at the moment.

“The damage to our plant caused by military action is significant, although not irreparable.

“Nevertheless, in our estimation, it will not be possible to immediately resume our production in Gostomel – even if the war ends, which is currently not foreseeable.”

The layoff announcement comes after initial investigations at the site, which found that Vetropack could only carry out clean-up work and protection and preserve its assets in the medium term.

The company said it currently has plans to permanently close its site and hopes to reopen it following repair works.

In the coming weeks, Vetropack will assess the initial steps it will take to restore production at the facility, which include securing the glass packaging and raw materials deposited at the site.

Reiter added: “The requirements for production resumption will not be met in the near future.

“In the interest of our entire corporate group, we have to act accordingly.”

Vetropack claims to be one of Europe’s leading manufacturers of glass packaging for the food and beverage sectors.