Investor profile
Company name: Henkel Bautechnik — https://www.henkel.de
Business sectors: Chemical industry (cosmetics, detergents and adhesives)
Founded: 1876
Founder: Fritz Henkel
Headquarters: Düsseldorf, Germany
Global presence: Western Europe, North America, Asia-Pacific, Eastern Europe, Africa and the Middle East, Latin America.
Henkel Bautechnik’s global operating figures:
- Employees worldwide: 50,000 (2023)
- Global sales: €22 billion (2022)
- EBIT: €1.8 billion (2022)
At the start of the full-scale war, every action and decision taken by the management of Henkel Bautechnik (Ukraine) was guided by one overriding consideration: employee safety. Operations at all four Ukrainian production facilities were therefore temporarily suspended. Production subsequently resumed at two plants, in the Kyiv and Lviv regions, followed later by the plant in the Kharkiv region.
Henkel Bautechnik focuses on innovation, new technologies and production expansion
Henkel Bautechnik (Ukraine) is making substantial investments in modernizing and expanding its facilities, upgrading established products, developing new ones and further digitalizing its processes.
Over the past year and a half, the company has delivered humanitarian projects worth hundreds of millions of hryvnias, helping numerous affected communities, employees and tens of thousands of Ukrainians. Despite unpredictable challenges, including reduced resources caused by temporary shutdowns and damage to its plants, as well as employees being called up to serve in the Armed Forces of Ukraine, Henkel Bautechnik (Ukraine)’s performance has now almost returned to pre-war levels. The results achieved by the Ukrainian team, working amid war and constant threats, have impressed colleagues across Henkel’s international operations. The company’s General Manager, Vasyl Dudnyk, explained how this was accomplished.
Which of Henkel Bautechnik’s business plans have been implemented despite the war?
Our teams have achieved very strong results: within a short period, we restored production and resumed deliveries to our partners. Henkel Bautechnik (Ukraine) is a leader in digitalization in the domestic market and has become a benchmark for many Henkel divisions worldwide. Our internal document workflows are now entirely digital, which has dramatically accelerated our processes. We have developed our own unique system for analyzing company and market performance in real time, giving us a powerful tool for assessing conditions and making decisions.
How is the company maintaining and restoring operations, including at the plant in the liberated part of the Kharkiv region?
Immediately after the liberation of the Kharkiv region, our team began restoring the facility. The buildings had sustained partial damage, while equipment and materials had been damaged or completely destroyed.
Our colleagues worked to restart the plant as quickly as possible and achieved something remarkable. In less than nine months, the production process was restored, manufacturing resumed and product shipments began.
Since February 2022, the company has continued investing in its operating Ukrainian plants. What are its development priorities?
We are focused on introducing new technologies, improving production processes and upgrading equipment. For example, our plant in the Lviv region has been equipped with a new wallpaper adhesive production line, while other production lines, warehouse facilities and logistics operations have been improved. Our company’s philosophy is built on initiative and continuous improvement. The war and its challenges have only accelerated these processes.
Thanks to innovative solutions, production efficiency per tonne of output is now higher than before the war.
Threats and challenges to energy supply have accelerated our efforts to maximize energy autonomy. We have installed additional industrial generators for production lines and alternative power sources, including solar energy, for our IT infrastructure.
Are upgrades to Henkel Bautechnik’s Ukrainian plants helping expand and improve its product range?
Continuous innovation has secured our company a leading market position. We actively develop the market and introduce new technologies, providing training for tradespeople and builders. To support this, we launched and continue to support Prokachka, one of the construction industry’s most significant events. Through this initiative, we share the latest knowledge and practical experience of working with innovative Ceresit products with hundreds of tradespeople across the country.
The company’s humanitarian projects are closely linked to recovery and reconstruction. Could you tell us more about the key areas of support?
The total value of the company’s humanitarian projects now exceeds €6 million. This also includes measures to support employees. People are our core value, and Henkel consistently demonstrates that this is more than a statement. During the blackouts and severe battery shortages, the company purchased supplies abroad and provided every employee with a “survival kit” that included high-capacity power banks. We supplied our products to colleagues whose homes had been damaged or destroyed. Alongside initiatives by Henkel’s global teams and our reconstruction projects for communities, foundations and organizations, our Henkel Bautechnik team is implementing a program with a total budget of UAH 3 million to help Ukrainians repair damaged homes. More than 100 Ukrainian families have already received this support.
How has the Ukrainian market changed during the full-scale war?
After the construction industry contracted by more than 50% in 2022, we have seen a significant recovery in 2023, with many market segments returning to pre-war levels. We saw a surge in demand for lower-priced products, but demand for technologically advanced products is also gradually recovering, with quality becoming a key priority. Construction companies have mainly focused on completing projects already underway, while, unfortunately, fewer new projects have been launched. Although this will undoubtedly affect market volumes, we remain optimistic about the future and believe the country will undergo extensive renewal and reconstruction once the war ends.
Five months have passed since Henkel completed its exit from the Russian market. How did colleagues and partners respond to this decision?
Henkel was one of the first global companies to clearly express support for Ukraine after the full-scale invasion and announce preparations to exit the Russian market. Nevertheless, we encountered repeated instances of unfair competition in Ukraine and attempts to orchestrate hostile sentiment against us. Henkel remained firm in its position, while the Ukrainian team had the support and understanding of its partners. This was particularly important because the process was complex and took longer than expected. Henkel acted consistently, and we are proud of that. Various international studies show that fewer than 10% of Western companies operating in Russia have so far decided to leave the market or completed their withdrawal.
How do you see Henkel Bautechnik’s future development in Ukraine? What is the company’s strategy?
Twenty-five years ago, Henkel decided to invest in Ukraine. We established four plants and became a recognized market leader. Our strategy remains unchanged: we develop the market. Every step demonstrates our determination to continue on this path and, despite all the challenges, work towards the development of our company and our country. We believe in Ukraine’s future and envision it as one of Europe’s most modern countries. These goals are supported by the best technologies and expertise, which our professional team develops and adapts for the local market.
