Manufacturers Closing Facilities in Ukraine

Russia’s full-scale invasion of Ukraine brought troops, tanks and airstrikes, which led to civilians using trains and cars to flee to safety. Meanwhile, according to CNN Business, numerous companies have limited manufacturing output in Ukraine while others have suspended production altogether.

Companies include a Swiss Coca-Cola bottling company, Danish brewer Carlsberg, steel manufacturer ArcelorMittal out of Luxembourg, American snack maker Mondelez and Switzerland’s Nestlé. The invasion also affected airlines such as Air France and Lufthansa, which have suspended flights into Ukraine. 

Coca-Cola HBC closed its Ukrainian plant and requested that its staff in the country stay home. The company’s geographic footprint stretches across three continents and 29 countries. It categorizes Ukraine as an “emerging market” along with Russia. 

Carlsberg ceased operations at two of its three breweries in Ukraine, where the company ranks as the country’s second-largest brewer with a 31% market share. The affected breweries are in Kyiv and Zaporizhzhya. A spokesperson reported employees were instructed to stay home. 

ArcelorMittal stated via Twitter, “Our priority is our people & we had developed plans to help them stay safe.” A second Tweet added its plant is slowing production to a technical minimum and underground mine production will be stopped. 

Reuters reports Mondelez’s CEO said it will close its Ukrainian plants if tensions with Russia escalate and become “too dangerous.” The company’s website says it employs over 4,300 workers in its Eastern European region. 

A Nestlé spokesperson announced the food and drink processing corporation “temporarily closed” its supply chain, warehouses and factories in Ukraine. Nestlé has three factories and approximately 5,000 workers in the country and said it has “contingency plans in place to restart the supply of products as soon as safe conditions allow.”