In view of the situation in Ukraine, at the end of February, Global Cosmed Capital Group issued an announcement to inform shareholders and business partners how the current economic and political situation will affect the continuity of household chemical and cosmetics production at its facilities. The announcement addresses imported raw materials, exported products, and transport issues.
Global Cosmed S.A. has its production plants in Poland (Radom, Świętochłowice, Jawor) and Germany (Stadtilm). The vast majority of manufactured products are based on ingredients that are widely available. Paradoxical as it may seem, the fourth wave of the pandemic that is coming to an end has, in a way, made the company formally prepared for the potential consequences of the current situation. Changes in the supply chain due to global transport constraints in the last 2 years have caused changes in purchasing procedures, expansion of the network of alternative suppliers, and changes in warehousing policy.
In terms of human resources risks, almost all persons employed at Global Cosmed companies hold Polish and German passports. However, in the long term, due to a sudden shortage of drivers at the cooperating transport companies, product delivery commitments may not be met on time.
Exports of GC products to Russia represent a marginal fraction of the Group’s sales and cessation of trade will not affect the company’s financial performance.
The solidarity with the Ukrainian people shared by all of us as market participants is accompanied by concern about maintaining continuity in supply chains and companies’ attempts to assess their individual situations. We constantly monitor the impact of the political and military situation in Ukraine on our activity and focus on the most important matter, i.e. coordinating help for refugees, said Magdalena Mielimonka, Vice President of Global Cosmed.
The company has already contacted the reception point at the border as well as, through local authorities, Ukrainian partner cities and local organisations organising support for incoming refugees. The refugees will receive hygiene products (soaps, antibacterial gels) and cleaning products (toilet gels, all-purpose cleaners, etc.). The aim is to provide support for needy women with children and help maintain cleanliness in the reception points for people fleeing war.