Konecranes condemns Russia’s aggression towards Ukraine. We are saddened and upset by the war and deeply concerned for our Ukrainian employees and their families. Their safety and well-being are number one priority for Konecranes as a company now. The Konecranes community is supporting them and their compatriots through local and global efforts. We join the global call for peace and a swift end to the war.

What kind of operations does Konecranes have in Ukraine?

Konecranes operates a crane and component factory in Zaporozhia, in the south-eastern part of Ukraine. The factory is one of the Industrial Equipment supply factories for crane components. The factory is a crane manufacturing unit for Eastern Europe deliveries. It also offers extra capacity for Konecranes’ western crane deliveries specialized in large steel structures. The factory has approximately 350 employees.

In addition, Konecranes has approximately 70 people working in crane service, port service, spare parts and industrial crane sales operations mainly in Odessa, Mariupol and Zaporozhia.

The vast majority of Konecranes employees in Ukraine is local people.

How is Konecranes supporting its local employees in Ukraine?

As of February 24, 2022, we have asked our employees to stay at home. We naturally have local contingency and emergency plans in place, and we continue to pay salaries and wages to our Ukrainian employees. The local management have been doing all they can to take care of our people and following up on them every day in the middle of this inhumane situation. Also, our HR and HSEQ teams are organizing ways to help, since this is the most efficient way to get our help delivered.

What happens to the planned production at Konecranes factory in Zaporozhia?

Our factory has been closed since Thursday February 24. Konecranes has a long history of operating in Ukraine and has been preparing for different scenarios and contingency plans. Those contingency plans have now been activated and we are reorganizing our production through alternative sources and supply network. The same deliveries and capacity can be offered from other factories and suppliers from Europe, for example our own production sites in Slany, Czech Republic, and Liebengrün, Germany. Additional costs carried by us and delays in customer deliveries are likely for the goods planned to be produced at our Ukrainian factory.

How big is Konecranes exposure to Ukraine in terms sales?

In 2021, Konecranes net sales to Ukraine totalled less than €5 million.

What kind of operations does Konecranes have in Russia?

Konecranes has approximately 200 employees in Russia and all three Business Areas (Service, Industrial Equipment and Port Solutions) have customers in Russia.

What is Konecranes’ sales exposure to Russia?

In 2021, Russia accounted for less than 2% of Konecranes’ consolidated net sales.

Why have you continued to do business in Russia? How ethical is it in these circumstances?

As of March 1, 2022, we have ceased shipments to Russia. As an employer, Konecranes has responsibility to take care of its employees based in Russia, as in any other country it operates in. Konecranes has also commitments towards its customers in Russia. These commitments are currently being analysed case by case. Konecranes is headquartered in the EU and will naturally comply with the sanctions set by the EU, the UK and the US and some other countries. We are currently evaluating different options regarding our business and operations in Russia and are monitoring the situation carefully.

What are your plans regarding your Russian business going forward?

We have decided to take a time-out and are not booking new orders for the time being. We are also currently evaluating different options regarding our business and operations in Russia and monitoring the situation carefully.

How about Belarus? What kind of operations and business do you have there?

Konecranes doesn’t have any employees based in Belarus and in 2021, Konecranes sales exposure to Belarus was less than €1 million. As of March 4, 2022, Konecranes has ceased all business to Belarus.