Amcor sells its factories in Russia

Packaging supplier Amcor has sold its three factories in Russia to HS Investments, a Russian-based investor, for 370 million euros.

“This follows Amcor’s previously announced decision to pursue the orderly sale of its Russian business while continuing to support its people and customers as well as preserving value for shareholders,” Amcor officials said in a statement. The decision was prompted by Russia’s invasion of Ukraine.

The Russian business produces flexible and cartons packaging from one site in St. Petersburg and two sites in Novgorod and employs approximately 900 people. In the statement, Amcor said the three sites in Russia generated approximately two per cent of total Amcor sales in fiscal 2022.

“Cash proceeds are expected to be used primarily for debt repayment and share repurchases,” the statement said. “The transaction is not expected to have a material impact on the outlook for fiscal 2023.”

Headquartered in Zurich, Amcor operates 220 locations in 43 countries.