Packaging group Elopak has announced that it plans to divest 100% of its Russian business to local management. In March of this year, the company suspended operations in Russia.
The Norwegian carton manufacturer noted that it undertook a thorough review of all possible options available before deciding to exit the market.
Elopak Sells Russian Operations
Operational activities of the Russian business will be under the control of the local leadership team.
Under its new owners, the business will operate independently, while Elopak will continue to abstain from business operations in Russia.
The sale is not expected to impact Elopak’s business outside of Russia and the group does not expect further material financial gains or losses recognised in the second quarter of 2022 as a result of concluding the transaction.
The completion of the transaction is subject to approval by the Governmental Commission on the Control over Foreign Investments in Russia, the company added.
St Petersburg Plant
Speaking in a recent interview with Reuters about the group's St Petersburg plant, Elopak CEO Thomas Körmendi said "We are exploring all opportunities of what we can do, including selling the plant," without giving further details.
The St Petersburg plant was the leading supplier of milk carton packaging in the Russian market, he said.
Group operations in Ukraine and Russia accounted for 9% of the company's revenue, with both affected by the Russian invasion of Ukraine.
© 2022 European Supermarket Magazine – your source for the latest packaging and design news. Article by Conor Farrelly. Click subscribe to sign up to ESM: European Supermarket Magazine.