Suzuki, Japan Tobacco caught up in Ukraine's economic shutdown

Feb 26, 2022 | News On Japan

Feb 26, 2022 (Nikkei) - The advance of Russian troops and fighting through Ukraine has prompted Suzuki Motor, Japan Tobacco and other global multinationals to halt operations inside the country to ensure the safety of workers.

Suzuki is suspending business activities at all 20 Ukrainian dealerships, the Japanese automaker said Friday. Operations were paused Thursday after Ukrainian President Volodymyr Zelenskyy declared martial law across the country.

Japan Tobacco suspended production at its factory in Kremenchuk in central Ukraine. The factory makes Camel-branded cigars for the Japanese market. When operations will resume is unclear, but the effects on Japanese sales are expected to be limited due to sufficient inventory.

Japanese auto supplier Sumitomo Electric Industries shut down its wire harness factory in the western part of the country. Because the area is anticipated to be targeted by Russian forces, "we will prioritize the safety of our employees," said a company representative.

None of the roughly 6,000 workers were injured as of Friday and no equipment has been damaged, the company said.

Fujikura, another Japanese wire harness maker, will halt its facilities in western Ukraine until Monday local time. The 1,300 affected workers have been ordered to stay home. ...continue reading

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