Supplier giant Magna International Inc. said it was halting its operations in Russia due to the invasion of Ukraine, a company spokeswoman said on Thursday.
“Like most in the international community, we remain deeply concerned with the very unfortunate situation in Ukraine,” Magna spokeswoman Tracy Fuerst said in a statement. “Given current conditions, Magna is idling its Russian operations.”
Magna has a significant presence in Russia, with six plants and about 2,500 employees in the country. Only Germany (32 plants), Austria (17) and the Czech Republic (11) have more Magna plants within their borders in Europe, according to the company’s website.
Magna follows many other automotive companies in suspending business operations in Russia due to the invasion of Ukraine. Automakers including Ford, Honda, Toyota, Volkswagen, Jaguar, Aston Martin, Volvo, General Motors and Daimler Truck have all suspended shipments to Russia, halted vehicle assembly in the country or both in recent days.
Russia was once seen as a promising market for Magna, and it had ties to Russian oligarchy in the past. A firm owned by Russian oligarch Oleg Deripaska invested $1.54 billion in Magna in 2007 as the supplier eyed expansion in the country and funding for a potential purchase of Chrysler Group. Derispaka sold those shares in 2008, according to a report by the Globe and Mail.
Magna recorded $345 million in sales in the country in 2020, or 1.1 percent of its total revenue that year, according to an annual report. Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $32.6 billion in 2020.
The company reported 2021 sales of $36.2 billion.
Fuerst said Magna made a “significant donation” to the United Nations refugee agency and would match employee contributions. More than one million people have fled Ukraine to neighboring countries, the agency said on Thursday.
“Although we don’t have facilities in Ukraine, we have the privilege of working with thousands of Ukrainian colleagues in our Magna operations around the world as well as those from Russia who share the same values of human rights, diversity and inclusion,” Fuerst said.