Irish-headquartered paper and packaging giant Smurfit Kappa has announced it is exiting the Russian market in response to the country's invasion of Ukraine.
The group had already suspended support for its Russian operations, including imports, exports and short- or long-term funding, and said it would continue to employ affected employees and fulfilling its legal obligations while conducting its exit "in an orderly manner".
Russian represents less than 1% of Smurfit Kappa's forecasted sales. The company, which employs 48,000 people at 350 sites in 36 countries, brought in revenues of €10.1bn and made a pre-tax profit of €913m last year.
Smurfit Kappa said it stands in solidarity with the Ukrainian people and that it would provide humanitarian supports to people in region as well assistance to its employees and contractors from Ukraine.
"Smurfit Kappa stands in solidarity with the people of Ukraine and everyone impacted by the totally unjustified attack on Ukraine and its people," Smurift Kappa said in a statement.
In Association with
"The group is providing, and will continue to provide, substantial humanitarian support for the Ukrainian people.
"We are also assisting the families of SKG employees and contractors from Ukraine as well as providing products and services to support the relief effort together with financial assistance to a number of aid agencies.
"We have also partnered with the Red Cross to provide funding to support their vital work."
Smurfit Kappa saw revenues increase 18% and earnings rise 13% in 2021, and the company in October completed the acquisition of a recycled containerboard mill in Italy with the capacity for 600,000 tonnes.
In Ireland alone, Smurfit Kappa made revenues of €109m, a slight fall from €111m in 2020, while bringing in €2.1bn from the eurozone, €1.2bn from non-eurozone European markets, €1.3bn from the Americas and €901m from the UK.
Smurfit Kappa CEO Tony Smurfit said in the company's annual report, published this week, that current trading was "strong" and that the group's integrated paper and packaging system remains effectively sold out.
"We continue to see significant opportunities across our geographic footprint and as such,
we are investing to build a platform for durable growth to meet customer demand.
"I am proud of how Smurfit Kappa continues to deliver across all performance measures and reflecting that confidence and the ever increasing strength of and prospects for the business," he said, as the Smurfit Kappa board recommended a final dividend of 96.1 cent per share.
(Pic: Getty Images)
