Clean Break: the company completely halting Russian engagements or exiting Russia
Leave Withdrawal
KNAUF is one of the largest manufacturers of building materials in the world.
Clean Break: the company completely halting Russian engagements or exiting Russia
Leave WithdrawalAfter Russia's full-scale invasion of Ukraine, the company officially made it clear that it saw no reason to leave the aggressor's market. They said they would remain in Russia as long as the political and commercial situation allows them to do so. They are responsible for more than 4,000 employees and their families, as well as for customers and suppliers, many of whom they have had excellent relationships with over the years, the company added. In October 2022, German media focused on the fact that Knauf supported the mobilization of its employees into the Russian armed forces. It was said that the Russian managers of the Knauf plant in Krasnogorsk near Moscow agreed with the authorities on the lists of those who were needed at the plant and who could be sent to war. Some of those who received a military subpoena were allegedly even taken to military enlistment offices in a company minibus. Also in February 2023, Knauf took part in the YugBuild exhibition event (Krasnodar Territory, Russia) and presented innovative building materials made in Russia. At the end of November 2023, the company even organized the KNAUF BUILD FEST 2023 exhibition event under the slogan The largest festival of Knauf technologies and solutions for construction and decoration with six growth zones for true professionals. Thus, Knauf specialists continue to build cities for the aggressor country. This contrasts especially cynically with the thousands of destroyed residential buildings in Ukraine by the aggressor's army, which is funded, among other things, by Knauf taxes.
Still operating across 14 sites in Russia but promised to suspend new investments. Revenue and Net Income increased in 2022 vs 2021. Investing into Russia’s construction industry: Germany’s Knauf branded international sponsor of war by NACP. Knauf played an important role in the reconstruction of destroyed Mariupol. The German TV channel ARD and newspaper Tagesschau has revealed that German companies are helping the Russian occupying regime with construction works in the occupied city of Mariupol. In particular, they obtained photos showing a construction site with Knauf bags, whose official dealer publicly advertises that it has completed a residential building project using its construction materials for Russia's Defence Ministry. Knauf is a leader in gypsum production and has a long history of doing business in Russia. The company's founder, Nikolaus Knauf, served as Russia's honorary consul for over two decades. The German prosecutor's office is investigating reports of Knauf's participation in the restoration of Mariupol. After the scandal, the German manufacturer of building materials Knauf Group has decided to abandon its business in Russia and transfer it to local management. To complete the transaction, it is necessary to obtain approval from the Russian authorities. Knauf expects that the deal will save jobs for more than 4 thousand employees. The Würzburg prosecutor's office has launched an investigation into the German concern Knauf in connection with German media reports that the company's products are widely used in the reconstruction of Mariupol, which was destroyed by Russian troops and captured by them during the war against Ukraine. Knauf decided that they would transfer their company in Russia to management, paying the amount due to the budget to the budget. 15% of the valuation amount, but with an option - the ability to buy the business back within two years.