Updating article: Situation in Ukraine

Latest update: 3 Aug 2022.  We've been shocked and heartbroken by the unjustified attack on Ukraine. Kiilto strongly condemns the Russian government’s military aggression against Ukraine. Our primary focus in this challenging situation is to do everything we can to ensure the safety and wellbeing of our local employees. We're closely monitoring the development of the situation and updating this article as the situation evolves.

Impact on our operations in Ukraine, Russia and Belarus   

We have operated in Ukraine, Russia and Belarus. Our operations in Ukraine are currently interrupted. 

As stated on March 17th, Kiilto has been working actively to implement its intention to transfer the subsidiaries in Russia to new investors. The divestment process is not driven by financial motives, but it is a legal way to withdraw from the Russian market.

In July Kiilto and Bergauf Group reached an agreement. Bergauf Group, one of the largest Russian manufacturers of construction chemicals, shall acquire Kiilto group's Russian operations. The acquisition is subject to approvals from relevant Russian authorities, that are expected to be received within coming months. The legal entities to be acquired are AO Kiilto-Klei, OOO Kiilto Family and OOO Kiilto-Klei Ramenskoe.

Sale of other Kiito subsidiaries in Russia continues and negotiations with potential acquirers are ongoing. Our operations in Belarus have ended. 

After a transition period and the divestment will be completed, Kiilto will not continue any operations nor will Kiilto brand be used in Russia. The transfer is executed complying with applicable sanctions and legislation and assuring the safety of our personnel. 

 

Our support to Ukraine

We are relieved by the news that our Ukrainian colleagues and their families are safe. We are working on finding out their individual needs and wishes for help in this current situation, trying to find concrete ways to help them in these difficult circumstances.

As a first stage help to our Ukrainian employees, we paid their two months’ salaries and an annual bonus salary for 2022 in advance. We are following the situation closely, and further helping methods are being examined and decided flexibly, based on the development of the situation and the current needs.

We have donated 50 000 euros to the Finn Church Aid (FCA), Finland’s largest international aid organisation, to help the victims of this terrible situation in the crisis area. In addition, together with Insta we have donated 10 000 euros to crisis help via international family business network.

We have shipped donations to the crisis area from Finland, Denmark, Sweden and Norway. Together with Udvikling Assens and other local companies on West Funen, Denmark, we shipped a lorry with a donation of 14.5 tons of goods to the Polish-Ukranian border. The shipment contained e.g., soap, hand creme, hand sanitizer, diapers, infant formula, clothes, beverages, mattresses and pillows. In Finland, via a shipment organized by Pamark Group, we have donated healthcare hygiene and personal hygiene goods to help in the crisis area. From Sweden we have donated hand disinfectants to health care institutions in Ukraine through UkrainaTransporten, in collaboration with Swedish Medtech and Labtech. From Norway we have donated Antibac hand disinfectants to Ukraine through EagleMission. 

Impact on our production and deliveries in EEA countries

The situation in Ukraine is very worrying and has a multidimensional impact on global supply chains and thus on product availability and prices. We do everything we can to minimize the impact. Our operations outside the crisis area are not dependent on Russian, Belarussian or Ukrainian raw materials. 

If crisis continues for a short time, we do not see any impact on the availability of our products in EEA countries. If the crisis prolongs, the effects will begin to show in the supply chain, e.g. increased energy, raw material and logistic costs, reduced availability of raw materials, longer delivery times and challenges in logistics. If the situation continues, we estimate that it will also have major impacts on the costs of chemical industry. 

Kiilto in Ukraine, Russia and Belarus

In Ukraine, Kiilto has had 20 employees working at a local subsidiary TOV Kiilto-Klei, and our office has been located in Kiev. 

In Russia, we have three subsidiaries: Kiilto Family LLC, KiiltoClean LLC and AO Kiilto-Klei. We have operated in Russia since 1995 and employ approximately 200 people there in total.  We operate in several locations: St. Petersburg, Ramenskoe, Kaluga, Levashovo and Moscow, of which production in Ramenskoe, Levashovo and Kaluga. Products produced in Russia are sold in Russia and Belarus, and the only export has been to Belarus. 

In Belarus we have had 5 employees at our local subsidiary IOOO Kiilto Klei and our office has been located in Minsk. 

Further information

Follow this updating article to get the latest information on the situation. Please direct your additional questions about the effects of the situation in Ukraine to your Kiilto contacts.