Global hygiene firm reacts to invasion of Ukraine.

 

Cleaning and hygiene company Essity has signed an agreement to sell its Russian business to local management.

 

The Stockholm-based company bought Australian hygiene products firm Asaleo Care in 2021.

 

Essity began production in Russia in 1994 and started to take steps to exit the market in April 2022 following the invasion of Ukraine. Now, the transaction has been approved by the Russian authorities and Essity expects the sale to be finalised before the end of this month.

 

According to the country’s Industry and Trade Ministry, Essity will transfer the right to manage its production facilities to Russian shareholders. The ministry stressed the company’s activities will continue and jobs will be preserved.

 

The Russian division of Essity employs around 1300 people and operates out of three factories. In 2022, it accounted for about two per cent of the group’s total sales, approximately SEK3 billion (US$280 million). 

 

“The total earnings impact will be reported when the transaction is finalised but is not expected to have a material financial impact,” Essity said.

 

For more on this story and other global news from OPI go to https://www.opi.net/news/region/002-europe/essity-divests-operations-in-...