Alfa Laval update on Ukraine and Russia
Alfa Laval announced a suspension of all shipments in and out of Russia due to the ongoing conflict in Ukraine. This decision prioritizes the safety of its employees, as the company provides support to affected staff. Historically, Alfa Laval's order intake from Russia and Ukraine has been around SEK 1 billion annually, constituting 2% of total revenue. The current order book in these markets stands at approximately SEK 750 million, with anticipated challenges in completing ongoing projects. The company retains its 240 employees in the region amidst low utilization expectations.
- Alfa Laval is actively supporting its employees in Russia and Ukraine, ensuring their safety and wellbeing.
- The company is committed to assessing the longer-term implications of the conflict, demonstrating a responsible approach.
- Suspension of shipments may significantly impact revenue, given the historical order intake of SEK 1 billion per year.
- Ongoing projects may face delays, leading to negative results.
- The anticipated low utilization of staff in the near term could affect operational efficiency.
LUND, Sweden, March 3, 2022 /PRNewswire/ -- Alfa Laval has taken the decision to pause all shipments in and out of Russia. The priority for Alfa Laval is to ensure the safety and wellbeing of its employees and provide support to those in the affected areas.
The Russian invasion of Ukraine is affecting Alfa Laval in many ways. The priority for Alfa Laval is to ensure the safety and wellbeing of its employees. Alfa Laval is providing financial and other support to affected employees. As the war is escalating, Alfa Laval will continue to review how to support and help its employees in the area – in the short and the long term. In addition, Alfa Laval will evaluate how it can further support the victims of the conflict.
Alfa Laval has decided to pause all shipments in and out of Russia. Historically the order intake from the markets in Russia and Ukraine has been approximately SEK 1 billion per year, equivalent to 2 percent of the total company. In parallel, an evaluation is being made of the existing orders and open projects. The total order book in Russia and Ukraine amounts to approximately SEK 750 million. The integrity of the order book will be re-assessed in connection with the first quarter report. In addition, some negative result effects are expected due to difficulties in completing ongoing projects.
Alfa Laval has a competent team of 240 employees in Russia and Ukraine. The team will be maintained despite the expected low utilization in the near term, while assessing the longer-term implications of the war on the Russian market.
This is Alfa Laval
Alfa Laval is a world leader in heat transfer, centrifugal separation and fluid handling, and is active in the areas of Energy, Marine, and Food & Water, offering its expertise, products, and service to a wide range of industries in some 100 countries. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets.
Alfa Laval's innovative technologies are dedicated to purifying, refining, and reusing materials, promoting more responsible use of natural resources. They contribute to improved energy efficiency and heat recovery, better water treatment, and reduced emissions. Thereby, Alfa Laval is not only accelerating success for its customers, but also for people and the planet. Making the world better, every day.
Alfa Laval has 17,900 employees. Annual sales in 2021 were SEK 40.9 billion (approx. EUR 4 billion). The company is listed on Nasdaq Stockholm.
For more information please contact:
Johan Lundin
Head of Investor Relations
Alfa Laval
Tel: +46 46 36 65 10
Mobile: +46 730 46 30 90
Eva Schiller
PR Manager
Alfa Laval
Tel: + 46 46 36 71 01
Mobile: +46 709 38 71 01
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SOURCE Alfa Laval
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