PPG (owner of Tikkurila) is winding down business in Russia, company announced. Currently, company continue to make only a minimum amount of sales sufficient to generate enough local currency to pay employees in Russia. Company had previously ceased all sales to the Russian oil and gas industry, state-owned entities, parties that fall within the scope of recent regulations and the aerospace market. The company plans to donate net profits, if any, generated by our Russian operations for full calendar year 2022 to nonprofit organizations providing direct humanitarian support.
Due to inability to sustainably operate even at this minimum level, PPG has taken the decision to activate options to exit Russia, including a possible sale or a controlled withdrawal from the Russia market, said company in a statement. Tikkurila has two production facilities in Russia located in St. Petersburg. First plant was buiilt in 1995.
Tikkurila is a leading Nordic paint company. According to the company, it has the first place in Russian decorative paints market. In 2020, company's revenue totaled Euro 582 million, including Euro 133.6 million (23%) in Russia. Non-current assets (plants, equipment, etc.) in Russia amounted to Euro 17.6 million.
In June 2021, Tikkurila became part of PPG.