AGC Inc. is debating whether to transfer business out of Russia. Officials say exit discussions center around the company’s architectural and automotive glass business in the country.
AGC already suspended investments in Russia in March 2022 due to its war with Ukraine. The suspended investments included the periodic repair of glass manufacturing furnaces.
“We have since been carefully monitoring the situation up until now, keeping in mind our employees’ and customers’ best interests,” say AGC officials. “We have now started considering the transfer of our operations in Russia. It is our policy to select a party that will continue to operate the business.”
According to company data, AGC’s Russian operations employ around 2,000 people. Its 2022 net sales in Russia were $304 million. The operating profit was $59 million.
The announcement comes nearly a year into Russia’s war with Ukraine. Russia launched a large-scale invasion of its neighbor on Feb. 24, 2022. Since then, Russia has been accused of war crimes in Ukraine and indiscriminately attacking civilian infrastructure. Per the Yale School of Management, over 1,000 companies have curtailed operations in Russia due to its aggression.
This includes several glass industry companies, including Guardian Glass, REHAU, and VELUX, among others.
Officials from Guardian Glass stated in July 2022 that the company’s decision to exit Russia stemmed from its concerns that the government would take control and benefit from operations. VELUX officials claimed that the war and the “heightened countersanctions and changing legal landscape in Russia” was the catalyst for its exit.