Nemak joins the list of companies that stop their operations in Russia in the midst of the conflict between that country and Ukraine. The Mexican manufacturer of aluminum components has a plant that represents about 1% of total sales, according to what was reported at the end of last year.
A cascade of announcements of temporary closures of assembly plants occurred on March 3, a week after Russia invaded Ukraine. The Volkswagen Group, BMW and Mercedes are some of the manufacturers that have decided to stop their local production and stop vehicle exports to Russia.
This has a direct impact on the Nemak plant, whose plant in Russia is only for customers within said territory and not for export.
"The stoppage of its operations in Russia is in line with similar measures announced by clients in that country," the company informed its investors in a statement sent to the Mexican Stock Exchange.
Russia is the third largest aluminum producer in the world and one of Nemak's suppliers, however, only 4% of total aluminum purchases come from this country.
In 2021, Nemak generated revenue of $3.8 billion, according to its earnings report.
Armando Tamez Martínez, general director of Nemak, said in the company's results guide that the company will continue "deploying a series of measures in order to mitigate the effects of cost volatility in our business, such as the prices of energy prices and inflation rates, among others”.
More information in development…
