Belgian chemicals group Solvay suspends Russian operations
Belgian chemicals group Solvay is suspending operations and new investments in Russia after the invasion of Ukraine, the company said on Monday.
The company will also suspend dividend payments from its RusVinyl JV in Russia with partner Sibur.
“Solvay has decided to suspend its operations and new investments in Russia,” CEO Ilham Kadri said in a statement, citing the conflict in Ukraine.
“Further, Solvay will suspend dividend payments from Rusvinyl, an independent 50-50 JV in Russia.”
The suspension is temporary and will be reviewed in due course, a spokesperson said, adding that the company had put a task force in place to manage the impact of the measures.
The company has 26 employees in Russia who will continue to receive salary and benefits during the suspension.
Solvay’s direct sales in Russia account for less than 1% of the group’s total revenue and its core profit from Russia and Belarus this year is projected at €100 MM ($109 MM), the company said.
The RusVinyl polyvinyl chloride production facility in Kstovo was among Russia’s largest petrochemical investment projects and is one of the largest PVC producers in the country with annual production capacity of 330 kt of PVC and 225 kt of caustic soda.
Solvay shares were down 2.3% at €83.80 by 1308 GMT, against a 1.4% decline for the broader Stoxx 600 Europe Chemicals index.
Reporting by Valentine Baldassari and Marine Strauss Editing by Edmund Blair and David Goodman
Comments