24 Mar 2023 10:27

Packaging co Smurfit Kappa completes sale of Russian assets - regional government

ST. PETERSBURG. March 24 (Interfax) - Irish packaging manufacturer Smurfit Kappa Group plc (SKG) has closed the sale of its Russian assets to local management, the Leningrad Region Economic Development and Investment Committee reported on Telegram.

"The new shareholder has made assurances that the changes will not affect the fulfilment of obligations to employees and the operations of manufacturing facilities. Cooperation with all customers and suppliers will continue," the regional government's deputy chairman for economics and investment, Dmitry Yalov was quoted as saying in the statement.

SKG's Russian division will change its name from JSC Smurfit Kappa Rus to JSC Kappa Rus at the end of April, the Russian company has said.

SKG announced its decision to exit the Russian market in April 2022. At the time, it said its Russian business represented less than 1% of forecasted sales. Smurfit Kappa Rus closed 2022 with a net profit of 1.75 billion rubles on revenue of 13.95 billion rubles, the SPARK-Interfax system showed.

SKG had four plants in Russia, including three in Leningrad Region and one in Moscow, that employed about 800 people, the company's website said. The company was the leader in sales of bag-in-box packaging for wine and liquid food products in Russia.