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Metsä Group’s business operations affected by Russian unrest

Published on :Thursday, April 28, 2022

Metsa

Russia’s attack on Ukraine affects Metsä Group’s business operations. In 2021, Russia accounted for 2.2% and Ukraine for 0.3% of Metsä Group’s sales. Russian sales have mainly consisted of folding boxboard sales to multinational brands and certain tissue paper deliveries. In March 2022, Metsä Board, a paperboard supplier, and Metsä Tissue, a tissue paper supplier, told their customers that they discontinue deliveries of new orders to Russia. Deliveries to Ukraine had to be interrupted when the war began.

Metsä Group has long invested in the production of renewable energy, and this now softens the impact of the crisis. The most challenging question is the availability of natural gas needed in production and the management of related costs. Metsä Group will continue to track the development of sanctions against Russia and the related official guidelines, as well as their impact on the Group’s business, and will react to changes as required.

Metsä Group has three key priorities in its operations when it comes to stopping the coronavirus pandemic: personnel safety, full participation in combating the pandemic as part of society and ensuring business continuity.

Metsä Group’s comparable operating result is in April–June 2022 expected to improve from January–March 2022. Metsäliitto Cooperative’s Board of Directors has decided to propose that an interest of 6.0% be paid on the participation share capital invested by members (6.0% for 2020) and that an interest of 5.0% (5.0) on additional members’ capital A and 1.0% (1.0) on additional members’ capital B be paid for 2021. The Board of Directors also proposes that a surplus reimbursement of EUR 0.15 per cubic metre of industrial roundwood received from a member over the past four concluded financial periods be distributed.

“We are living in times of uncertainty and rapid changes. Russia’s attack on Ukraine has led to several changes in Metsä Group’s operations. We have discontinued our wood supply from Russia, our sawn timber production in the country and the sales of paperboard and tissue papers to Russia and Belarus. The increase in European energy prices will have a considerable impact on the cost structure and profitability of tissue paper production in Central Europe. We continue to prepare for a disruption in Russian energy supply in our operations.”

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