Düsseldorf Henkel is discontinuing its business in Russia after a long period of hesitation. “The implementation process is now being prepared,” the Düsseldorf-based consumer goods manufacturer announced on Tuesday against the backdrop of Russia’s war of aggression on Ukraine. The Persil producer was more invested in Russia than any other Dax group. Henkel generates five percent of its group sales there and employs 2500 people in eleven plants. These are to continue to be paid for the time being.
How expensive the exit will now be for Henkel, the group did not want to disclose on Tuesday: “The financial impact of the planned exit for Henkel associated with the decision can not be quantified in more detail at this time.”
Henkel management had held on to the business in Russia for a long time despite public pressure. CEO Carsten Knobel recently justified this at the Annual General Meeting: In Russia, there was a risk that subsidiaries of foreign companies could be expropriated by the government in the future if they withdrew from the country. In this case, considerable assets would flow to the Russian government. In addition, local management could be held personally liable in the event of a withdrawal.
Henkel also argued with the welfare of its employees and the fact that they produced goods for everyday use. “We do not make decisions lightly,” Knobel said at the time. Recently, however, more and more doubts could be heard in public statements from the company side
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translation
Düsseldorf Henkel is discontinuing its business in Russia after a long period of hesitation. “The implementation process is now being prepared,” the Düsseldorf-based consumer goods manufacturer announced on Tuesday against the backdrop of Russia’s war of aggression on Ukraine. The Persil producer was more invested in Russia than any other Dax group. Henkel generates five percent of its group sales there and employs 2500 people in eleven plants. These are to continue to be paid for the time being.
How expensive the exit will now be for Henkel, the group did not want to disclose on Tuesday: “The financial impact of the planned exit for Henkel associated with the decision can not be quantified in more detail at this time.”
Henkel management had held on to the business in Russia for a long time despite public pressure. CEO Carsten Knobel recently justified this at the Annual General Meeting: In Russia, there was a risk that subsidiaries of foreign companies could be expropriated by the government in the future if they withdrew from the country. In this case, considerable assets would flow to the Russian government. In addition, local management could be held personally liable in the event of a withdrawal.
Henkel also argued with the welfare of its employees and the fact that they produced goods for everyday use. “We do not make decisions lightly,” Knobel said at the time. Recently, however, more and more doubts could be heard in public statements from the company side
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