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Henkel Spins Off Its Russia Business

Germany's Henkel said on Friday it has spun off its Russia business after the chemical and consumer goods company had announced its exit from the country earlier this year.

Henkel's Russian operation will change its name to Lab Industries from January and will act independently of the German group, a Henkel spokesperson said, confirming a report from Russia's Itar-Tass agency.

"In preparation for the announced sale, it must be ensured that the local business can operate independently of Henkel's global business processes and systems," the spokesman added.

Interested Bidders 

In October, the company's chief executive Carsten Knobel said there were numerous bidders interested in the business, adding that the withdrawal from Russia would be finalised by the end of the year.

The maker of Persil washing detergents and Schwarzkopf had been active in Russia for more than 30 years and most recently operated eleven production sites there.

Exit From Russia 

In August Henkel announced its plans to close its business activities in Russia due to the country's invasion of Ukraine, adding it would keep paying its 2,500 employees in Russia until the process is finished.

At the time of the announcement, the company highlighted that it was working with its teams in Russia to make the exit as smooth as possible but could not quantify the financial impact of the move.

Read More: Germany's Henkel To Close Business In Russia

News by Reuters, edited by Donna Ahern, Checkout. For more A-brand news, click here. Click subscribe to sign up for the Checkout print edition.

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