24.05.2023

Statement on the publication | THE INSIDER 17 May 2023

The management of Salamander Industrie-Produkte GmbH responds to the "THE INSIDER" publication as follows and announces the immediate discontinuation of deliveries to Russia and Belarus.

 Last Wednesday, "THE INSIDER" reported on European companies that supply Russian companies which also manufacture products for the Russian war of aggression against Ukraine.

 One of the companies named in the report, to the dismay of Salamander Industrie-Produkte GmbH, was its subsidiary "Salamander Premium Solutions", which specialises exclusively in leather recycling.

 According to the strict EU sanctions list, leather fibre fabric is classified as a harmless material, which is used in table sets, flooring, wall coverings, packaging and ballerina shoes, and as a component for back caps and soles in everyday civilian shoes.

Salamander is clearly on the side of Ukraine and supports it with aid deliveries

Salamander strongly condemns Russia's criminal war of aggression, is absolutely on the side of Ukraine and has already organised aid convoys worth more than 100,000 euros directly through its subsidiary SIP Ukraina in Krywyi Rih to provide direct assistance. Further opportunities for support are being planned.

External and internal review processes since the start of the war

For this reason, Salamander subjected its business relations in Russia to an external and internal review process right from the start of the war between Russia and Ukraine:

 Salamander has supplied recycled leather as sheet goods and for use in everyday civilian shoe components, such as back caps, shoe soles and ballerina shoes.

 According to the strict EU sanctions list, leather fibre fabric is classified as a non-critical material. Internal processes and external consultants ensure compliance with EU sanctions and are audited internally.

The use of leather recycling components in combat boots can be ruled out from a technical point of view because the material properties of leather fibre are unsuitable for the extreme conditions of use of a modern combat boot, where plastics and light thermoplastics are commonly used.

 In addition, the low and steady annual purchasing volume of € 57-120T gave no indication of increased input quantities and accounts for less than 0.6% of Salamander's sales of the business unit – and 0.04% of the Group's sales with these customers, and is not sufficient for industrial production on a significant scale.

Immediate introduction of additional measures: suspension of deliveries as well as discontinuation of business in Russia and Belarus

 To underline Salamander's clear and unequivocal positioning on the side of Ukraine, and notwithstanding the aforementioned arguments, it has been decided to immediately stop deliveries to the two customers concerned, and furthermore, to discontinue all other business in Russia and Belarus. Difficult neighbouring countries will also be subjected to a critical review in the short term. Salamander's approach is stricter and tougher than the current EU sanctions list requires.

 Salamander does not consider it acceptable to be associated with combat boots in any manner whatsoever. The company deeply regrets any irritation that may have arisen and would like to establish the necessary clarity and certainty through the measures it has taken.

 This is the assessment and position jointly held by the entire management team.