Paint Giant Officially Exits the Market

Recently, international coatings giant Jotun announced that it has sold its interests in Russia and left the country. The Russian industrial company Atomstroykomplex has taken over operations, employees and assets. The employees will continue to work at the company under the leadership of the new boss. Following the closure of the Russian plant on March 3, Jotun divested its shares in its wholly-owned subsidiary "Jotun Paints" LLC.

The president and CEO said that doing business in the country has become increasingly challenging and this situation will not change in the near future, and that existing employees will retain their positions under existing agreements and terms with the new owners.

According to public information, Atomstroykomplex is a leading real estate development and construction materials company headquartered in Yekaterinburg, Ural Federal District. Atomstroykomplex entered the market in 1995 and consists of a construction company, a building material production plant, a fleet of up-to-date road construction vehicles and machinery, a design office, a real estate agency and a home repair office.

Core businesses include the construction of industrial, commercial, housing and socially significant facilities, general civil construction performance, specialist contractor engineering and road engineering. The company provides general contracting and engineering services for the construction industry in the Yekaterinburg and Sverdlovsk regions. The inclusion of a coatings company in its group portfolio is seen as a good strategic fit, and Atomstroykomplex expects the facility and its employees to contribute to further growth and positive long-term development for owners and employees.

According to the paint procurement network, in early March, the well-known paint company Jotun Paint announced the suspension of its business in Russia. Jotun said he was deeply concerned about the ongoing conflict in Ukraine. Due to the ongoing conflict between Russia and Ukraine and the imposed sanctions, Jotun has decided to suspend its operations in Russia until further notice.

"We have been operating in Russia for a long time. We have an excellent team there and a modern production site. But based on the overall assessment, we now believe that the closure is correct and necessary", Jotun President and CEO Morten Fon "Jotun is deeply concerned about the humanitarian consequences of the current crisis," he said.