Plastic packaging firm Amcor plc will "scale down activities" but continue to operate in Russia in response to that country's invasion of Ukraine.
A total of three factories in Russia generate 2-3 percent of Amcor's total sales, and the company has been in the country for more than 20 years, CEO Ron Delia said in a March 21 letter to employees.
The move to focus "our manufacturing on supporting only existing multinational customers," "suspending new projects and investments" and "discontinuing exports from the country as soon as possible" comes after careful consideration, Delia said in his letter.
Amcor previously closed a specialty cartons facility in Kharkiv, Ukraine, "to protect our local team right before the armed conflict started." That location is near the Russian border.
Amcor said it is guided by the following values: "Our first focus is the safety of our people in Ukraine."
"We recognize that our packaging products help people in communities everywhere with their daily necessities," the company added. "Our sense of obligation extends also to the multinational customers we partner with in Ukraine and Russia.
"As the war and humanitarian crisis from Russia's invasion of Ukraine continue, it is important that we remain connected and well informed as a team. We are witnessing a tragic situation and our hearts go out to the people whose lives have been so terribly affected. We join the urgent call for a peaceful resolution to the conflict," Delia said in his letter.
Amcor is pledging at least $1 million in direct support for employees in Kharkiv and their families as well as general humanitarian aid through the International Red Cross, the company said. The company is matching employee contributions.
"We will also continue to explore all strategic options for the business while assessing the rapidly evolving situation. We will take additional actions as needed, always guided by our values and responsibilities to our stakeholders," Delia said.
Locations in Russia include a specialty cartons plant in St. Petersburg and a flexibles plant in Veliky Novgorod. The company, with about $13 billion in annual sales, has some 220 locations in 40 countries.