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FOLLOWING
- Bimbo makes a decision in the face of the conflict in Ukraine.
- Temporarily suspend its operations.
- Grupo Bimbo’s plant in Ukraine will not be working.
Bimbo suspends operations Ukraine. The conflict between Ukraine and Russia that began on last thursday It has seriously marked Ukrainian citizens after the Russian attack, but some companies that have plants in the town that has been bombed during these days have also been involved.
Grupo Bimbo reported that for four days it temporarily suspended the operations of its plant in Ukraine, located in the town of Dnipro, to safeguard the physical integrity of its almost 150 collaborators, who are all Ukrainians due to the war that began in that European country.
Grupo Bimbo makes a decision after the conflict facing Ukraine
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In a statement, the bakery explained that its Ukraine plant joined Grupo Bimbo in 2017, in addition to the fact that it also has operations in Russia. “For Grupo Bimbo, the highest priority is the safety of each one of its collaborators in all its operations in the world, so everything within the company’s reach will be done to support the bakery teams. in Ukraine,” he explained.
According to El Universal, Grupo Bimbo has a presence in Ukraine through Bimbo QSR, responsible for baking and supplying bakery products mainly to fast food restaurants, Quick Service Restaurants (QSR) with whom it has maintained in constant communication to know and monitor the situation in the conflict zone.
After the conflict in Ukraine Bimbo suspends its operations at its plant
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On the other hand, the Telediario portal reported that in 2017, with the acquisition of East Balt Bakeries for 650 million dollars, Grupo Bimbo managed to expand its presence in eight new markets, including Ukraine and Russia, for which the company has decided to put a brake on its distribution due to the conflict between the two entities.
“The conflict is an additional risk, particularly for wheat. As part of our strategy, we ended 2021 with approximately 70 percent coverage of our raw material needs for the entire year,” said Diego Gaxiola, Director of Administration and Finance for the company, according to El Universal. Filed Under: Bimbo suspends operations Ukraine.
Bimbo suspends all kinds of operations at its plant in Ukraine
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“This does not mean that we will not see any impact, because we will begin to face additional inflation at the end of the year and in 2023,” added Diego Gaxiola. It is worth mentioning that Ukraine is the third largest producer of wheat, one of the main inputs for each of Bimbo’s products.
It is worth mentioning that the portal Newscast He shared that for Daniel Servitje, president and CEO of Grupo Bimbo, if the situation continues for a long period of time, this will have a great impact, mainly in the case of basic household products.
Mexico is Ukraine’s second largest trading partner in all of Latin America
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It is important to note that Mexico is Ukraine’s second largest trading partner in all of Latin America, and for seven years our country has ranked second after the United States for seven consecutive years. The main products that the Ukrainian country sells to the Mexican state are metallurgical products, fertilizers and cereals.
While Mexico’s exports to Ukraine consist of cars, alcoholic beverages and soft drinks. On the other hand, the portal Expansion He spread that the conflict between the Russians and the Ukrainians has caused the world to be divided into two camps, on one side there are around 20 NATO member countries led by the United States and the European Union who support Ukraine. Filed Under: Bimbo suspends operations Ukraine.
The conflict between the Russians and Ukrainians has caused the world to divide into two camps
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There are five Russian allies and a China that is indecisive, while tensions grow in the geopolitical arena when it comes to business, there are companies that have been left with the complex situation of having to operate in two markets that are under war.
The Expansión portal stated that the Mexican companies, Bimbo and Gruma, are in the middle of the crossfire. For its part, the global bakery company has already announced that the plant located in Ukraine is going to suspend its sales operations due to the great conflict it is going through.
Different companies take action in the face of the war between Russia and Ukraine
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The Telediario outlet reported that at the end of 2021, Gruma had 73 plants around the world, currently, 74 percent of the company’s sales are made outside of Mexico. The firm operates in Ukraine with Azteca Milling, a subsidiary that emerged after the purchase of Altera.
The main producer and marketer of corn in said market is under the regime of Azteca Milling. Now, together with the operations in Italy and Turkey, they are the ones that help supply the Middle East and North America, according to what the aforementioned portal reviewed. Filed Under: Bimbo suspends operations Ukraine.
Some operations are considered within the Europe region
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Various media have shared that in Russia the company has a presence with Mission Foods; In 2017, the firm became the Mexican company with the largest investment in the country, generating around 50 million dollars in a production plant. While Orbia, focused on the construction, infrastructure, chemical products and other industries, is present in Ukraine through Wavin Ukrain, focused on the production and sale of PVC pipes and fittings.
The operations carried out in both countries are considered within the Europe, Asia and Africa (EAA) region, which last year represented 9.8% of the company’s total income, which stood at $348,887 million pesos, according to with the information presented on the television news.
Bimbo and Gruma are severely affected after the conflict between the Russians and Ukrainians
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Gruma also carries out various operations in both countries. According to Telediario, the producer of corn, wheat and tortilla flour operates a plant in Russia, in which it invested around 50 million dollars in 2017 and where it produces wheat tortillas and corn chips.
Without a doubt, the economy of various companies has been affected by the great war conflict between Russia and Ukraine, which is why the Bimbo company has taken a drastic decision in the face of the problem and temporarily suspended operations at its plant in Ukraine. Filed Under: Bimbo suspends operations Ukraine.
The post Grupo Bimbo makes a drastic decision after the conflict between Ukraine and Russia appeared first on Hispanic World.