4 Apr 2022 19:34

Henkel continuing operations in Russia, monitoring developments - supervisory board chair

DUSSELDORF. April 4 (Interfax) - Germany-based Henkel, manufacturer of cosmetics and household cleaning items, plans to continue operating in Russia for the time being, though it is closely monitoring the developing situation, Simone Bagel-Trah, chairperson of the company's supervisory board, said at the annual general shareholders' meeting on Monday.

Bagel-Trah said that the company would continue to adapt its decisions accordingly in Russia, and it takes criticism and questions related to its position seriously, MarketWatch reported.

Henkel CFO Marco Svoboda also said that he saw no need for unscheduled write-offs of the company's assets in Russia and Ukraine.

Although Henkel has stopped investments, advertising and sponsorship projects in Russia, production at 11 factories in the country continues, taking into consideration the international sanctions.

Henkel CEO Carsten Knobel added that the company is responsible for 2,500 employees in Russia. "A full exit from the Russian business could have far-reaching consequences, including for our local employees," he said.

The company has shuttered its four production sites in Ukraine, where there were around 600 employees.

Founded in 1876, Henkel has been operating on the Russian market since 1990. The company comprises adhesive technologies; laundry and home care; and beauty care. In Russia, Henkel produces goods under the well-known brand names of Persil, Bref, Pril, Losk, Laska, Schwarzkopf, Syoss, Fa, Ceresit, and Moment and Loctite adhesives.