The Ukrainian Black Sea city is an important seaport and also the location of HHLA. The Hamburg port operator has suspended all activities on site for the time being.
(Photo: AP)
Dusseldorf, Berlin, Munich Due to Russia’s military attacks on Ukraine, more and more German companies are stopping their local production. As one of the first he had Lower Franconian plaster manufacturer Knauf reported, to close his plant with around 590 employees “as a precaution until further notice”. All employees on site are doing well. The family company operates a plant in the Donbass region in the east of the country, which is still under Ukrainian control, 20 kilometers from the previously occupied separatist areas.
>>> More information: Russia starts war in Ukraine – the current developments
According to the German-Ukrainian Chamber of Industry and Commerce, around 2,000 companies with German participation are active in the Ukraine. Most of them are located in the west of the country – 700 kilometers from the main conflict line. But airstrikes and Russian troop movements are now being reported from almost all parts of the country.
The Hamburg port and logistics group HHLA has therefore stopped operating its container terminal in the Black Sea port of Odessa. The port operator, which is majority-owned by the city of Hamburg, has been responsible for the largest Ukrainian container terminal in Odessa on the Black Sea since 2001. 170 million dollars have been invested there since then.
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“We cleared the last two ships by 9 a.m. and left the port at the request of the Ukrainian authorities,” said CEO Angela Titzrath. 480 employees were sent home with the advance payment of a monthly wage, only eight security guards are still active there for security. It is still unclear whether the company’s own facilities have already been hit by a Russian rocket attack reported by Ukrainian news agencies.
The port is particularly important for supplying the population with consumer goods. In addition, it mainly serves as an export port for agricultural products. It is not known when and if there will be a reopening.
Leoni and Henkel are closing plants, Metro branches are closed
Over the course of Thursday, more and more companies reported that they had closed their plants. The auto parts supplier Leoni, for example, stopped production at its two Ukrainian production sites and sent the workers home. One follows the escalation of the situation with “bewilderment”. Medium-sized automotive suppliers are well represented in Ukraine.
Persil manufacturer Henkel has also closed its four plants there. The 600 employees have been instructed to stay at home. Henkel makes almost one percent of its group sales in Ukraine.
The wholesale group Metro is anchored in the country with 26 stores and employs 3,400 local people. According to Google, around half of the Metro stores in Ukraine are currently closed. The group has made preparations for the employees, according to a spokesman, without giving any further details.
Also with regard to the closed plants, Oliver Hermes said, Chairman of the Committee on Eastern European Economic Relations: “This is a black day for Europe. There will only be losers in this war.” For 70 years, the association has been trying to build economic relations with Eastern Europe. “The successes of this work are being massively questioned today,” says Hermes.
Logisticians stop transports
German logistics companies have meanwhile stopped their transports from Ukraine. The companies would order employees back, said Frank Huster, general manager of the Federal Association of Forwarding and Logistics (DSLV). The association recommends its members not to plan any movements in and out of the affected areas.
The situation is likely to exacerbate delivery bottlenecks in Germany. Almost half of the truck drivers deployed here come from Eastern Europe, many of them from Ukraine, said Thomas Hansche, spokesman for the Federal Association of Logistics and Transport. Toll statistics show that a third of all trucks on German roads are registered in Eastern European countries. “Now in the event of war, these drivers will drive home to support their families,” says Hansche.
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In addition, rail freight traffic came to a standstill due to the outbreak of war. The rail transport that Hamburg-based HHLA started in the Ukraine a good year ago has now been stopped, reports HHLA’s international head Philip Sweens. According to HHLA, no transport is currently taking place on the so-called Iron Silk Road, which connects China with the economic centers in Europe. HHLA also anticipates further restrictions for shipping traffic between the Port of Hamburg and the Russian ports on the Baltic Sea such as Ust-Luga and St. Petersburg.
This picture was taken in 2014 and shows an abandoned branch of the wholesale chain after the Donbass conflict escalated. Ukraine is an important foreign market for Metro.
(Photo: dpa)
The rail logistics subsidiary DB Schenker has also suspended its work in the logistics branches in Ukraine. The company employs 90 people locally. Private travel is also increasingly restricted. The bus operator Flixbus no longer sells tickets for connections to Ukraine, a spokeswoman said. However, planned connections would still take place.
German top managers are dismayed
Top German managers reacted with dismay. Mercedes boss Ola Källenius said: “Our thoughts are with the people of Ukraine. Business is secondary.” The carmaker sold 43,000 vehicles in Russia and 3,000 in Ukraine last year. The brand has been producing the E-Class in a factory near the Russian capital Moscow since 2019.
Telekom boss Timotheus Höttges was “horrified” when the annual figures were presented. Other events, such as the business figures, seem “downright banal” in view of the developments in Ukraine. Telekom is not active in Ukraine, but employs more than 2,000 people at three locations in Russia.
Siemens Energy CEO Christian Bruch said at the group’s annual general meeting: “The attack on Ukraine represents a turning point in Europe.” His thoughts are with the people of Ukraine, especially the 47 employees and their families.
The Ukraine is a comparatively small but attractive foreign trade partner for Germany. With a good seven billion euros from exports and imports, the Eastern European country only ranks 43rd according to the Federal Statistical Office. The country has affordable skilled workers and, with over 40 million inhabitants, offers a relevant sales market.
Before the situation escalated, there were even more investment requests from German companies, according to the German-Ukrainian Chamber of Industry and Commerce. Peter Adrian, President of the Association of German Chambers of Industry and Commerce (DIHK), sees this development as a serious threat: “The economic consequences of this invasion are not yet foreseeable, but they are certainly serious.”
More: All current developments on the war in Ukraine in the Newsblog