Ball looks to sell Russian assets as it suspends operations

WESTMINSTER — Ball Corp. (NYSE: BLL) said this week that in the face of ongoing Russian military aggression against neighboring Ukraine, the can maker will attempt to sell its assets in Russia, suspend future investments and reduce operations at its existing operations in the country.

The company operates aluminum can plants in the Russian cities of Argayash, Naro Fominsk Vsevolozhsk.

Last year, Ball said it would build a new plant in Ulyanovsk, a move that appears to be off the table now. 

The company is “deeply troubled by the war in Ukraine,” according to a company news release. 

In a statement issued last week, Ball said its Russian plants have operated since the 1990s and are “self-contained in terms of raw materials, manufacturing process and customers.”

Ball reported that its Russian business accounted for 4% of the company’s total net sales in 2021 and 8% total comparable operating earnings.

The company’s sales last year were more than $3.6 billion. Without its aerospace division, sales still topped $3 billion. So, the impact of Russian operations on Ball’s bottom line was likely to be in the ballpark of $100 million. 

The potential loss of that revenue appears to have spooked investors as Ball’s stock dipped from above $94 per share on Monday to less than $90 per share on Tuesday morning. 

This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2022 BizWest Media LLC.

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