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13. Jun 2022 | Markets & Companies

Interview: "Either a sale of our business or liquidation"

Interview by Damir Gagro

We spoke to Lars Petersson about Hempel's business activities in Russia.
Lars Petersson, Group President and CEO of Hempel
Image source: Hempel

You have suspended your activities in Russia in March. What are the next steps?

Lars Petersson: On 1 March, we announced that we had suspended all of our activities in Russia. This meant that we stopped all deliveries into and out of Russia, stopped all deliveries within Russia, stopped taking orders in Russia and completed a safe closure of our production in Ulyanovsk. On 6 April, we announced the permanent closure of our Russian operations and initiated a controlled exit from the region.

What scenarios are included in “a controlled exit” from Russia?

Petersson: We currently foresee two possible options for exiting Russia – either a sale of our business or liquidation, in accordance with local laws and regulations. Should we find a suitable buyer for our Russian business, we will do our utmost to secure the future employment of our 124 Russian employees. The other scenario for exiting Russia, which we are at the same time looking into, is to liquidate the company. In the event of liquidation, our employees would be dismissed in compliance with local labour laws.

What is the timeline?

Petersson: Both scenarios (the sale of our Russian business and liquidation) are already being assessed. We don’t have a precise timeline as we are still under assessment, we are moving as fast as we possibly can under the current challenging circumstances. We therefore cannot speculate on when we may be able to either complete a sale or conduct a responsible voluntary liquidation.

Hempel operates a facility in Russia. What will happen with the site?

Petersson: We expect that the site and equipment will eventually be sold to a suitable buyer or as part of a liquidation.

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