Solvay, Dow, Rehau join ranks of firms suspending operations in Russia

Global plastics and chemicals firms have been actively pulling out of most existing business in Russia and curtailing plans for future programs as a result of Russia's invasion of Ukraine.

Solvay SA is suspending operations and new investments in Russia because of that country's invasion of Ukraine while Dow Inc. has significantly reduced its operations in Russia.

In addition, the auto supplier Rehau Group — with corporate headquarters in Switzlerland but operations based in Germany — said it is suspending operations in both Russia and Belarus. Belarus has supported the Russian invasion.

Officials with Brussels-based Solvay said in March 7 news release that the firm "is deeply concerned by the dramatic humanitarian crisis that is unfolding as a result of the hostilities in Ukraine." In addition to suspending operations and new investments, Solvay also is suspending dividend payments from Rusvinyl LLC, an independent 50/50 joint venture in Russia.

Rusvinyl operates a 500-employee plant in Kstovo with annual production capacities of more than 700 million pounds of PVC resin and almost 500 million pounds of caustic soda. Solvay owns the firm jointly with Russian petrochemicals firm Sibur.

The Solvay Solidarity Fund also has donated 1 million euros ($1.1 million) to the Belgian and International Red Cross in support of relief efforts for civilians impacted in Ukraine. These funds will help provide access to clean water, medicine and medical equipment, repair vital infrastructure and improve living conditions for families. Solvay has also committed to matching employees' private donations to help address the growing humanitarian needs.

"Solvay is deeply saddened by the loss of life and suffering in Ukraine," CEO Ilham Kadri said. "Our top priority has been the safety of our colleagues in Ukraine. We are taking action to support the ongoing humanitarian efforts to ease the suffering of those impacted by this crisis.

"We stand behind all our employees, including our Ukrainian and Russian colleagues in such an unprecedented crisis, and will provide all the necessary support, including salaries and benefits," she added. "We thank them all for their continued dedication and resilience."

Solvay is a global supplier of plastics and specialty chemicals. The firm employs more than 23,000 worldwide and posted sales of $11 billion in 2021.

In a statement sent to Plastics News, officials with Dow in Midland, Mich., said that the firm "stands in solidarity with the people of Ukraine and denounces Russia's invasion of Ukraine."

They added that Dow, a major global resin supplier, had previously suspended all purchases of feedstocks and energy from Russia and has significantly reduced its operations and product offerings in the country.

Under the current circumstances, officials said, Dow has also stopped all investments in the region, and is only supplying "limited essential goods" in Russia, including food packaging, hygiene, cleaning and sanitation products and household goods.

In an email to PN, a Dow spokesman confirmed that the firm's actions will include its polymer dispersions plant in Ramenskoye and its polyurethane systems plant in Vladimir that is a joint venture with Russian petrochemicals firm Izolan. The Ramenskoye plant operates as LLC FINNDISP and sells into applications such as adhesive tape, architectural and industrial coatings, and lubricants in primers and water-based adhesives.

The Vladimir JV plant operates as Dow Izolan and makes PU systems for rigid and semi-rigid PU foams as well as adhesives and elastomers used in construction automotive, furniture, shoe soles and appliances. The company website describes Dow Izolan as "the biggest and the most innovative polyurethane systems manufacturer in Dow Europe."

Dow also has sales offices in Moscow; Kyiv, Ukraine; and Astana, Kazakhstan.

Dow officials also said that the firm is providing evacuation support, financial assistance, shelter and other support to help employees and their families in Ukraine and "is activating similar processes" for its Russian employees.

"We fully support the sanctions implemented against Russia and the efforts of the international community to re-establish peace and safeguard democracy," they added. "Dow is prioritizing the safety and security of its colleagues in Ukraine and Russia."

Dow previously said that the firm and the Dow Co. Foundation are contributing $275,000 to help meet humanitarian needs for the people of Ukraine. Officials said this funding will support the International Red Cross Movement through CAF America, with $25,000 of that amount matching employee contributions.

On a LinkedIn post, Dow Chairman and CEO Jim Fitterling said that "as the Russian invasion of Ukraine unfolds before our eyes, we are putting the safety and needs of our people and partners first, including supporting humanitarian needs to help those who are suffering."

"I am thankful for the resilience and passion of Team Dow to help where needed most," he said. "We stand in solidarity with our team and the people of Ukraine."

Dow employs almost 36,000 worldwide and posted sales of almost $55 billion in 2021. The firm ranks as one of the world's largest producers of polyethylene and other specialty plastics and chemicals.

Global plastics manufacturer Rehau Group has suspended its operations in Russia and Belarus until further notice because of the Ukraine crisis.

"We have seen the development of the crisis and the suffering of the people in Ukraine with shock and great concern," officials with Muri, Switzerland-based Rehau said in a March 7 news release.

"As a company that operates in Ukraine, as well as in Russia and Belarus … we strongly condemn the attack on Ukraine and its people. It is a war against humanity, the freedom of all of us and peace in Europe. And thus against the values for which we as Rehau Group stand," the company added.

Officials noted that Russia "in particular, where we have been present for many years, is an important market for us. We hope that the situation will soon change in such a way that we can resume our activities in both countries."

"Our priority now is the safety of our colleagues and their families in Ukraine and those that are leaving the country," Rehaus officials said.

They added that Rehau began preparing possible contingency plans some time ago and that "concrete help" is underway at various levels, including an emergency aid fund — Family for Families — which has been endowed by the company with "a significant sum" to provide immediate assistance and to support reconstruction. Rehau also has set up an account for donations from its 20,000 employees worldwide.

Rehau has annual sales of more than 4 billion euros ($4.3 billion), making plastic products for automotive, construction, furniture and other markets. The firm's Americas headquarters is in Lynchburg, Va.

It makes PVC windows and doors for the building and construction industry, injection molded bumper fascia and spoilers for the auto industry, cross-linked polyethylene pipes and other functional parts.