Solvay, Rehau join ranks of firms suspending operations in Russia

Global plastics and chemicals maker Solvay SA is suspending operations and new investments in Russia because of that country's invasion of Ukraine.

In addition, Rehau Group — with corporate headquarters in Switzlerland but operations based in Germany — said it is suspending operations in both Russia and Belarus. Belarus has supported the Russian invasion.

Officials with Brussels-based Solvay said in a March 7 news release that the firm "is deeply concerned by the dramatic humanitarian crisis that is unfolding as a result of the hostilities in Ukraine." In addition to suspending operations and new investments, Solvay also is suspending dividend payments from Rusvinyl LLC, an independent 50/50 joint venture in Russia.

Rusvinyl operates a 500-employee plant in Kstovo with annual production capacities of more than 700 million pounds of PVC resin and almost 500 million pounds of caustic soda. Solvay owns the firm jointly with Russian petrochemicals firm Sibur.

The Solvay Solidarity Fund also has donated 1 million euros ($1.1 million) to the Belgian and International Red Cross in support of relief efforts for civilians impacted in Ukraine. These funds will help provide access to clean water, medicine and medical equipment, repair vital infrastructure and improve living conditions for families. Solvay has also committed to matching employees' private donations to help address the growing humanitarian needs.

"Solvay is deeply saddened by the loss of life and suffering in Ukraine," CEO Ilham Kadri said. "Our top priority has been the safety of our colleagues in Ukraine. We are taking action to support the ongoing humanitarian efforts to ease the suffering of those impacted by this crisis.

"We stand behind all our employees, including our Ukrainian and Russian colleagues in such an unprecedented crisis, and will provide all the necessary support, including salaries and benefits," she added. "We thank them all for their continued dedication and resilience."

Solvay is a global supplier of plastics and specialty chemicals. The firm employs more than 23,000 worldwide and posted sales of $11 billion in 2021.

Global plastics manufacturer Rehau Group has suspended its operations in Russia and Belarus until further notice because of the Ukraine crisis.

"We have seen the development of the crisis and the suffering of the people in Ukraine with shock and great concern," officials with Muri, Switzerland-based Rehau said in a March 7 news release.

"As a company that operates in Ukraine, as well as in Russia and Belarus … we strongly condemn the attack on Ukraine and its people. It is a war against humanity, the freedom of all of us and peace in Europe. And thus against the values for which we as Rehau Group stand," the company added.

Officials noted that Russia "in particular, where we have been present for many years, is an important market for us. We hope that the situation will soon change in such a way that we can resume our activities in both countries."

"Our priority now is the safety of our colleagues and their families in Ukraine and those that are leaving the country," Rehaus officials said.

They added that Rehau began preparing possible contingency plans some time ago and that "concrete help" is underway at various levels, including an emergency aid fund — Family for Families — which has been endowed by the company with "a significant sum" to provide immediate assistance and to support reconstruction. Rehau also has set up an account for donations from its 20,000 employees worldwide.

Rehau has annual sales of more than 4 billion euros ($4.3 billion), making plastic products for automotive, construction, furniture and other markets. The firm's Americas headquarters is in Lynchburg, Va.

It makes PVC windows and doors for the building and construction industry, injection molded bumper fascia and spoilers for the auto industry, cross-linked polyethylene pipes and other functional parts.