Business

Akzo Nobel plans to close its Russian plants

FILE PHOTO: Cans of Dulux paint, a brand owned by Akzo Nobel, are seen on the shelves of a hardware store near Manchester, UK.
FILE PHOTO: Cans of Dulux paint, a brand of Akzo Nobel, are seen on the shelves of a hardware store near Manchester, Britain, April 24, 2017. REUTERS/Phil Noble

March 14, 2022

AMSTERDAM (Reuters) – Dutch paint and coatings maker Akzo Nobel expects its four plants in Russia to shut down within months due to economic sanctions and shortages of raw materials, its chief executive told the Financial Times in an interview published on Monday.

“We are quite realistic that this will lead to a gradual, if not normal, cessation of business over a month, two month period,” CEO Thierry Vanlancker said of Akzo’s Russian operations.

“Either because the raw materials are no longer available, or because the main customer somewhere cannot pay.”

The products Akzo makes for retail and industrial customers in Russia are not subject to any sanctions regime, company spokeswoman Diana Abrahams told Reuters.

However, she said that the company’s supply chain in Russia has been affected by the effects of the war in Ukraine and the sanctions imposed on Russia by Western countries.

“…it is clear that even products that are not sanctioned are and will be hit. The entire chain from delivery to the customer is broken,” she said.

Abrahams said Akzo is reviewing daily what it can do to help its 640 employees in Russia and its 17 employees in Ukraine, without giving further details.

Akzo’s four Russian plants generate annual sales of around 200 million euros ($219 million), or just over 2% of the total sales of 9.6 billion euros last year.

(Reporting by Bart Meijer; Editing by Susan Fenton)

https://www.oann.com/akzo-nobel-expects-its-russian-plants-to-go-out-of-business/?utm_source=rss&utm_medium=rss&utm_campaign=akzo-nobel-expects-its-russian-plants-to-go-out-of-business Akzo Nobel plans to close its Russian plants

DUSTIN JONES

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