Amcor suspends new projects and investments in Russia and discontinues exports
22 Mar 2022 --- Amcor is scaling down its activities in Russia in response to the Russia-Ukraine war. The packaging giant will focus its manufacturing on supporting only existing multinational customers, suspend new projects and investments, and discontinue exports from Russia.
The company has operated in Russia for more than 20 years, where it will continue to ensure compliance with local and international laws. Currently, its three factories in the country generate 2% to 3% of its total sales.
Amcor closed its site in Kharkiv, Ukraine, to protect its local team as the armed conflict broke out. The company has a dedicated crisis team continuing to monitor developments in real-time.
“We are deeply concerned about the humanitarian crisis in Ukraine and are actively contributing to the relief efforts. Amcor is committing at least US$1 million for direct support to our team in Kharkiv and their families and general humanitarian aid in partnership with the International Red Cross. This [aid] includes a matching contributions program open to all Amcor colleagues worldwide,” says CEO Ron Delia in a message to Amcor’s global workforce.
“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.”
Exploring strategic options
Delia adds that Amcor will continue to explore all strategic options for the business while assessing the rapidly evolving situation, taking additional actions as needed, guided by its values and responsibilities to stakeholders.
Amcor closed its Kharkiv site in Ukraine as the armed conflict broke out.These values include firstly its focus on the safety of its people in Ukraine. The company also recognizes that its packaging products help people in communities everywhere with their daily necessities.
“Our sense of obligation extends also to the multinational customers we partner with in Ukraine and Russia,” notes Delia.
“Those considerations come together in how we work with our customers: they also take care of their own teams and rely on us to bring products to communities in need. Together we support the livelihoods of many thousands of people along complex supply chains.”
Impacts of war
Russia’s invasion of Ukraine has thrown the European packaging industry and the markets it serves into fresh uncertainty as businesses strive to bounce back from the COVID-19 pandemic.
Surging oil and gas prices and raw material supply chain issues have exacerbated already high energy prices.
There have also been suggestions that the conflict could encourage investment in bioplastics to relieve industry dependency on increasingly volatile fossil fuel supply.
Meanwhile, the African Energy Chamber has claimed African oil and gas supplies could “easily” replace Europe’s threatened energy resources, lower prices and decarbonize production practices.
Last week, Mondi clarified the reasons for its continued business dealings in Russia after coming under criticism for refusing to join an industry-wide divestment from the country.
By Joshua Poole
