Foodservice and packaging maker Huhtamaki Oyj will divest its operations in Russia, saying the "current evolution of the situation and the long-term outlook in Russia will prevent the realization of its growth strategy and long-term ambitions in the country."
The company, based in Espoo, Finland, halted its business in the country following the February invasion of Ukraine by Russia.
In an April 14 statement, the company said that "the safety and wellbeing of all our colleagues remain of paramount importance."
Huhtamaki employs about 700 people at its four manufacturing units in Russia. Net sales in the country represent approximately 3 percent of the group’s total net sales.
The company said that it will maintain its operations subject to supply chain availability, while looking for potential buyers, to meet its contractual and regulatory obligations and to safeguard employees and customers.
The company will continue to seek out investments that capture the significant growth opportunities in the rest of the world, in line with its global ambitions and 2030 Strategy.
Huhtamaki develops and manufactures sustainable packaging for consumers at 114 operating locations in 38 countries around the world. In 2021, the Group posted 3.6 billion euros ($3.9 billion) in net sales. Huhtamaki aims to design all its products to be recyclable, compostable or reusable by 2030 and has committed to achieving carbon neutral production that same year.
Another European company, Swedish automotive sealing supplier Trelleborg Group, said April 7 it had halted plans to build a facility in Russia following the Ukraine invasion.