11th Mar 2022 06:13
(Alliance News) - Mondi PLC announced on Friday it was assessing all options for its interests in Russia, including any form of legal separation.
But the Weybridge, England-based paper and packaging firm said this did not mean, or imply, that it is planning or initiating any liquidation or bankruptcy proceedings in relation to any of its Russian subsidiaries or assets.
A number of companies globally have shut down their businesses in Russia since Moscow invaded Ukraine around two weeks ago.
Mondi's operations in Russia represent 12% of its revenue by location and generated 20% of its underlying earnings before interest, taxes, depreciation and amortisation over the last three years. It has operated in Russia for over 22 years.
In 2021, the company posted revenue of EUR7.7 billion and underlying Ebitda of EUR1.5 billion.
The most significant facility in Russia is a wholly-owned integrated pulp, packaging paper and uncoated fine paper mill located in Syktyvkar. It also has three converting plants in Russia.
All these facilities primarily serve the domestic market and have continued to operate through this time of heightened geopolitical tension.
The Syktyvkar plant is operating, but the mill is starting to see a number of operational constraints, including in the importing of process chemicals, spare parts and other critical supplies.
In Ukraine, Mondi has one paper bag plant located in Lviv, west of the country. Production is suspended.
By Artwell Dlamini; [email protected]
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