Stock exchange release
March 11, 2022 at 1 p.m.
Aspo updates the status of its operations in Ukraine and Russia
Aspo condemns Russia's military action on Ukraine. Due to the tragic events in Ukraine, Aspo is adjusting its operations in Russia. In line with the previously announced strategy, the company's growth investments will be targeted at Western markets in the future.
As a result of Russia’s military action, some of Telko's and Leipurin's warehouses in Ukraine have been destroyed. This has not resulted in personal injury. The value of destroyed inventories is approximately EUR 3-4 million. Despite this, Aspo is fully committed to continuing the distribution operations of Telko and Leipurin in Ukraine.
Of Aspo's businesses, Telko and Leipurin have a total of 60 employees in Ukraine, and during the crisis our main priority has been to do everything we can to help our Ukrainian employees. Telko’s and Leipurin’s local employees and their families have been provided with transport to Poland and Romania and accommodation in apartments rented for them. In addition, salaries have been paid in advance to the Ukrainian employees of the companies. In addition to local efforts, Aspo has donated 50,000 euros to the Finnish Red Cross Disaster Relief Fund.
Most of ESL Shipping's business operations in Russia will be discontinued in the coming days. The aim is to transfer the freed-up capacity to other traffic areas. ESL Shipping has also suspended the start-up measures of its previously established Russian subsidiary.
Telko's business in Russia currently focuses on selling products in stock. The export of products to the country is very limited, although the products distributed by Telko are not subject to sanctions.
Leipurin’s operations in Russia will be reduced in certain regions and raw material sourcing will be shifted to the local level. No new projects related to Leipurin's own machine manufacturing will be launched in Russia.
The adjustments are made taking into account personnel and local legislation. Aspo's management closely monitors the progress of the crisis and its effects, and evaluates and implements possible additional measures.
Further information, please contact:
Rolf Jansson, CEO, Aspo Plc, +358 400 600 264, email@example.com
Aspo creates value by owning and developing business operations sustainably and in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 18 different countries, and it employs a total of approximately 960 professionals.