Belron and AGC Comment on Russian Invasion of Ukraine

The war between Russia and Ukraine has put lives — and businesses — on hold.

Belron, which owns and operates Safelite AutoGlass and Safelite Solutions in the U.S., operates glass services under Carglass® in one location in Ukraine.

In November 2010, Belron acquired 12 auto glass repair and replacement locations in four Russian cities formerly owned by Mobiscar LLC. Under Belron, the locations are under the franchise name of Carglass® Russia.

“All of us at Belron® are truly shocked and horrified by the invasion of Ukraine by Russia,” a company spokesperson says. “Our thoughts are with the people of Ukraine and particularly with those who work in our Carglass® Ukraine franchise business in Kyiv. We are in close contact with them and will be supporting them and their families in whatever way we can.”

The company spokesperson says that Belron sources “a relatively small amount of vehicle glass from Russia through our global suppliers.” The company has “been keeping a close eye on the situation over the recent weeks.”

As of February 23, Belron stopped placing orders from Russia. “The shortfall in windscreens will come from other factories in our supply chain,” the company spokesperson says. “We have made the decision to suspend our relationship with our franchise partner in Russia. We will no longer supply goods to them or provide in-country support. This is no reflection on the team in Russia, but purely in response to the invasion.”

AGC, formerly Asahi Glass, does business in more than 30 countries in Asia, Europe, North America and South America. The company released a statement on March 7 that it is “deeply concerned about the situation in Ukraine and hope for peace to be restored as quickly as possible.” The company’s business in Russia accounts for 10 percent of European sales and more than 10 percent of the company’s employees. In a March 18 statement, the company confirmed the safety of its 24 employees in Ukraine.

AGC’s architectural and automotive glass products produced in Russia are sold mostly in Russia. “In light of the current situation, the Group has decided to suspend investments in the country including the periodic repair of glass manufacturing furnaces,” the company statement says. “Regarding the automotive glass business, the Group has largely scaled down the production and shipments to automobile manufacturers in Russia.”

Earnings of the company’s business in Europe may become affected if the price of natural gas remains high, because architectural and automotive glass operations use natural gas as fuel in the manufacturing process.

“We will continue to monitor the situation closely and take appropriate actions,” the company statement says.