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May 25, 2022 04:43 PM

Rehau selling Russian operations as Ukraine invasion continues

Catherine Kavanaugh
Senior Reporter
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    Rehau_i.jpg

    Rehau, Germany-based Rehau Group has had operations in Russia for 30 years.

    Rehau Group will sell its business in Russia to the local management and completely withdraw from the country, joining about 1,200 companies that have curtailed operations as the war in Ukraine enters its fourth month.

    A preliminary agreement was signed by both parties, according to a news release from the Rehau, Germany-based company, which has a U.S. headquarters in Leesburg, Va.

    Rehau officials had announced March 4 that they would ramp down their Russian business in a "controlled manner."

    "The development of the past weeks has made further decisions unavoidable," the company said in announcing the sale.

    The group had been active in Russia for about 30 years, primarily in the window, construction and furniture sectors, the release also says.

    In recent weeks, Russia continues to shell cities and block the export of Ukrainian crops, which is causing a food crisis.

    Founded in 1948, the family owned group consists of five companies serving the automotive, construction, furniture, materials, medical and industrial markets. Rehau molds parts and products, such a assembled bumper systems, windows, cabinet surfaces, silicone hoses, and medical tubing, catheters and molded parts.

    The group generates more than $427.2 million (4 billion euros) annually and employs some 20,000 people at more than 190 sites. The company website shows locations in Moscow and Kyiv.

    In North America, Rehau is No. 76 in Plastics News' ranking of injection molders with $110 million in sales in the region and No. 28 among pipe, profile and tubing processors with $185 million in sales.

    The Rehau Group website says company officials are deeply concerned about what is happening in Ukraine.

    "Our top priority is the safety of our colleagues and families in Ukraine," the post says.

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