Oetiker is closely following the developments in the Ukraine, with shock and sadness about the escalation of events.
The Oetiker Group does not operate any subsidiaries in the Ukraine or in Russia and are therefore relieved that all Oetiker team members are outside of the conflict zone. We are of course offering support to employees who have family ties to either country in any way that we can.
In light of the increasingly difficult business environment in Russia, we have decided to suspend fulfillment of all orders and shipments with immediate effect. We hope for a diplomatic resolution that would allow us to reinstate normal business operations soon.
In the meantime, our production and business operations proceed without any disruptions. We do not expect any direct or material impact on our ongoing operations. We have no direct suppliers in either of the two countries. So far, we have not experienced any abnormalities in the availability of our main raw material (recycled stainless steel), as we are not dependent on either the Ukraine or Russia for its procurement. It is our procurement strategy to maintain a diverse and global supply chain to minimize the risk of regional disruptions. Additionally, we assure sufficient raw material inventories and a global footprint to ensure continuity of supply.
We do not have any direct exposure to any other raw material suppliers (sub-components, services, etc.)who depend on the Ukraine or Russia, nor do we have any exposure to companies currently involved in sanctions or embargos. Our locations in Europe as well as our suppliers, do rely on the European energy markets, with Russia as one of the indirect supplier countries.
We continue to closely monitor the situation and the rapidly unfolding developments. Further investigation of direct and indirect impact is ongoing. We are committed to meeting delivery schedules and fulfilling customer expectations. Should we encounter any unforeseen risks, we will of course provide an immediate update about the current status and remediation actions.