According to a press release from the 7th of June Ponsse invites its personnel to cooperate in negotiations under the Act on Cooperation within the Undertakings. The negotiations concern adaptations to the current situation, the situation concerning the Russian war in Ukraine.
Ponsse adapts to the current situation
The Russian invasion of Ukraine caused Ponsse to stop their exports to Russia of both machines as well as spare parts and services. Furthermore, the war in Ukraine has caused significantly increased manufacturing costs. At the same time, profitability and cash flow have decreased. Uncertainty in the availability of components has made the situation even more difficult.
“The situation is highly polarized. Ponsse’s market situation has so far been relatively good in its main markets, but the stoppage in exports to Russia and local maintenance activities has made a massive impact on our operations, profitability, and cash flow. In the short term, the Russian market is too large to be replaced. Due to the changes in our operating environment, we are forced to slightly downscale our production volumes and streamline our operations,” says Juho Nummela, President and CEO of Ponsse Plc.
All major manufacturers have left Russia
As we wrote by the start of the Russian invasion, none of the major forest machine manufacturers are active in Russia or Belarus due to the war in Ukraine. As for Ponsse, that means a cutback of 20 percent of their total net sales. The company’s export and service operations in Russia have been suspended since the 2nd of March 2022.
Read the latest press release on the subject from Ponsse here.