EJOT withdraws from business in Russia
Sale of the national company Wostok
After a lengthy review, the management of the EJOT Group, in consultation with the Advisory Board, has decided to withdraw from the Russian business. In view of the great suffering and the unbelievable destruction caused by the Russian aggressors in Ukraine, there will be no economic "business as usual" in the near future.
In all these considerations we have to take into account that we have a duty of care towards our 70 colleagues of the EJOT subsidiary in Wostok and that we also fulfil this duty - as far as we are able to do so in this difficult situation. This problem is faced by many of the Western companies represented in Russia and thus model solutions crystallise, which are often pursued after weighing up the advantages and disadvantages.
One of these solutions is the sale of the EJOT company in Russia to the local management. Its advantage is the possibility of securing the employment of the Russian employees for a longer period of time. To this end, we have held the necessary talks and completed the sale of EJOT Wostok.
For this purpose, we have allowed the national company EJOT Wostok the use of trademark rights for the contract period, e.g. for the further distribution of the anchors produced by Wostok in Russia for the fastening of thermal insulation. Thus, deliveries to Russia by companies of the EJOT Group will now also end. In addition, we have negotiated contractual buy-back arrangements which should enable us to re-enter the market in the event of a fundamental change in Russian policy. Whether this can happen in this way, we cannot foresee today.
Your Holding Management
In all these considerations we have to take into account that we have a duty of care towards our 70 colleagues of the EJOT subsidiary in Wostok and that we also fulfil this duty - as far as we are able to do so in this difficult situation. This problem is faced by many of the Western companies represented in Russia and thus model solutions crystallise, which are often pursued after weighing up the advantages and disadvantages.
One of these solutions is the sale of the EJOT company in Russia to the local management. Its advantage is the possibility of securing the employment of the Russian employees for a longer period of time. To this end, we have held the necessary talks and completed the sale of EJOT Wostok.
For this purpose, we have allowed the national company EJOT Wostok the use of trademark rights for the contract period, e.g. for the further distribution of the anchors produced by Wostok in Russia for the fastening of thermal insulation. Thus, deliveries to Russia by companies of the EJOT Group will now also end. In addition, we have negotiated contractual buy-back arrangements which should enable us to re-enter the market in the event of a fundamental change in Russian policy. Whether this can happen in this way, we cannot foresee today.
Your Holding Management
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Andreas Wolf
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