Mondelez to re-open war-damaged Ukraine plant

UKRAINE—Mondelez International plans to re-open its crisp factory near the Ukraine capital which was closed following Russia’s invasion of Ukraine.

The plant in Vyshhorod, which makes the local brand of crisp called Lyuks has suffered severe damage in the conflict and the Oreo cookie maker will continue to make repairs at the factory, while restarting production.

Mondelez’s biscuit factory in Trostyanets, in the north-eastern region of Ukraine, remains closed after it suustained “significant damage” in the conflict.

“Sadly, our site in Trostyanets has suffered significant damage, as there has been significant military action in the entire area since the war began,” Mondelez said in a statement that was sent to Just Food.

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Adding that, “To the best of our knowledge, no employees were injured at the facility, which we closed as soon as the war began.”

Mondelez which started operations in Ukraine in 1994, does not break down sales numbers for the country within its Europe division, which generated revenues in the year to 31 December of US$11.2 billion.

For the group as a whole, revenues amounted to US$28.7 billion in 2021, an organic growth rate of 5.2%. Company-wide profit was US$4.3 billion.

In April, the company estimated a 3 cents per share dent on its annual profits and a US$200 million hit to its revenue following the closure of its two factories in Ukraine and the impact of the war on global commodities.

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The company, which owns the Cadbury brand, said it recorded US$75 million in property, plant and equipment impairments from the war.

Facing pressure to leave Russia, in March, Mondelez announced it was “scaling back all non-essential activities in Russia”, while helping maintain continuity of the food supply during the challenging times ahead”.

The company said at the time, it will focus its operation on basic offerings, discontinue all new capital investments and suspend its spending on advertising media.

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