Knauf plans to retreat from Russia: Focus on workplace!

Knauf plans to retreat from Russia: Focus on workplace!

The building material manufacturer Knauf, based in Iphofen, has been on Ukraine in public criticism since the raid in Russia. The company faces allegations to support the construction and operation of nuclear waffle bases in Russia. A report of the SPIEGEL had indicated that Knauf-materials for military purposes could have been used.

Knauf emphasizes that the company has not delivered any goods to Russia since February 2022 and that there are no products from Russia. In addition, the company makes it clear that it does not maintain any contractual relationships with military authorities and processes all business in accordance with the applicable sanctions. The Russian subsidiaries produce exclusively for the local market and supply independent dealers.

retreat from Russia planned

Knauf plans to withdraw completely from Russia after the company has worked in the country for over 30 years. This decision was confirmed in Iphofen and is a reaction to current geopolitical developments. However, the planned transaction, which affects the entire business in Russia, including raw material acquisition, production and sales, is still subject to approval by the Russian authorities. The aim is to secure the jobs of more than 4,000 employees in Russia.

The discussions about the withdrawal are already well advanced, but regulatory complex, which requires lengthy permits. From April 2024, Knauf will no longer transfer profits from his Russian subsidiaries to Germany. The Kremlin has also issued strict requirements that limit the sale of subsidiaries in Russia to a maximum of 60% of the estimation value, which means significant financial losses for Western companies.

growth and diversification outside of Russia

Knauf, which generated sales of around 15.4 billion euros in 2022, is one of the largest building material manufacturers worldwide. The company is active in about 90 countries and operates hundreds of works that include around 40,000 employees. In Ukraine, Knauf has a work in Kiev with around 420 employees and started building two new production facilities in the west of the country.

Although Knauf has become criticized by his business activities in Russia, especially in connection with the reconstruction of the city of Mariupol occupied by Russia, the company rejects the allegations of violating sanctions. Knauf has confirmed not to deliver any building materials from the EU to Mariupol.

Overall, the situation for Knauf is complex due to the geopolitical developments and strict sanctions against Russia. The company strives to meet all regulatory requirements and at the same time protect the jobs of its employees.