Published: July 18, 2023 10:13 am
Author: RT
Essity’s products, among others, include Libero diapers and Zewa toilet paper
Swedish consumer-goods manufacturer Essity has finalized the sale of its business in Russia, the company said in a press statement published on its website on Monday. Essity produces Zewa toilet paper, Libresse hygiene pads and Libero diapers, among other goods.
According to the document, Essity’s Russian assets were sold to local company New Technologies LLC, whose line of business includes wholesale distribution of industrial machinery and equipment.
The deal was worth about 10.6 billion rubles ($117 million) and included the sale of three Essity factories in Russia, along with temporary rights to the brands these factories produce, namely Zewa, Tork, Libresse, and Tena.
“Ever since the start of Russia’s war against Ukraine, we have been fully focused on exiting Russia. Today, we have completed the divestment of our business following a long and complex process,” Essity CEO Magnus Groth said, commenting on the sale.
In 2022, Essity’s sales in Russia corresponded to about 2% of its total consolidated net sales.
Essity announced plans to withdraw from the Russian market in April 2022, shortly after the start of Russia’s military operation in Ukraine, along with a number of other foreign firms that cited “deteriorating business conditions” due to Western anti-Russia sanctions as the cause for withdrawal.
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Experts say the company’s exit from Russia will not affect the domestic market, as the new buyer will be able to continue to make the same products at Essity’s now former Russian factories.
“Nothing will change with the sale, as with other businesses: they will rewrite the names, introduce a new product line, the work will continue to be carried out at the same factories,” Olga Sumishevskaya, the founder of consulting company One Story, told RIA Novosti.
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