Oleksandr Panchenko, the director of Sika Ukraine, told LDaily about his own experience of running a business during a war, about the company’s preparation for war that began in advance, about social and humanitarian projects, and about the team he is proud of.
LDaily: What was your experience of running a business during a war? What changes occurred in your company, what difficulties did you face, and how did you overcome them?
O. Panchenko: Aggression and war, as strange as it may seem, were not a surprise for our company. On January 24, 2022 — exactly a month before the war started — we released the “Policy of Sika Ukraine LLC during military aggression”. That is, we started preparing and taking action in advance. The “Policy” (or Instruction) meticulously outlines all the steps that the company’s staff should take during a military aggression. The first and main priority, of course, was the personal safety of the company’s employees and their families. Then came the next steps – such as the conservation of production, offices, and measures to preserve the company’s property.
Sika Ukraine LLC has three offices: in Kyiv, Dnipro, and Lviv. During the military aggression, the main one became the office in the city of Lviv.
In addition, all offices were replenished with medical kits, first aid supplies, extra fire extinguishers, reserves of water and some long-term storage products even before the war began.
Most of the company’s employees with families were evacuated to Western Ukraine. The corporation also offered assistance, providing an opportunity for all those wishing to evacuate to Poland, Slovakia, Romania, and other European countries.
After placing all company employees and their families in safe locations, we had to think about work, about business.
Of course, all our partners were in a similar situation, with whom we maintained close relations as much as possible throughout this time.
We resumed work during the aggression with the supply of military materials for the rapid restoration of runways at ruined airports. This was already at the beginning of March 2022. I would like to highlight the brave and decisive actions of my partners, who sometimes risked safety concerns and opened their warehouses during air raids to unload materials for military needs.
Later, from April 2022, work began to resume. New supply routes were developed, and production gradually began to recover. This was done in close and consistent cooperation with partners and customers.
LDaily: What are the biggest challenges Sika is facing in the Ukrainian market right now, and how is the company dealing with these challenges?
O. Panchenko: Of course, we had problems, probably the same as many Ukrainian companies. The biggest challenge in work processes turned out to be power outages after the aggressor’s destruction of infrastructure facilities. A sad day was November 23, when an enemy missile hit close to our production. Fortunately, there were no human casualties among our staff. However, the explosion blew out 96 windows in the production facilities … We managed to overcome the aftermath of the explosions within a week. We timely bought a powerful diesel generator for production, and thanks to this, it worked almost without stops.
Office premises in Lviv, Kyiv and Dnipro were also continuously supplied with electricity. In this, our partners from “Sika Germany” partially helped us.
LDaily: What percentage of your business has recovered since the beginning of the war?
O. Panchenko: Last year we finished with a result of approximately -45% compared to the same period in 2021. We consider this a decent result, considering the war, force majeure circumstances, inflation, and depreciation of the hryvnia.
LDaily: What do you think helped the business overcome difficult challenges and stay afloat? What were the key factors of success in such conditions?
O. Panchenko: The key factor in achieving these results is undoubtedly the people. Sincere patriots, dedicated to their cause, highly professional, each in their place. There were no signs of panic. Only measured and thoughtful actions, the desire to help everyone and each.
I would like to highly appreciate the help of the corporation, which came on time and continues to this day. And it’s not just, or even primarily, financial help. It’s the creation of a Coordination Council to assist during military aggression, and a special approach to improving business management, simplifying many corporate procedures for us.
And of course, an important factor in success is the partners, customers, and friends of the company, with whom we had, have, and I hope will have a clear understanding of cooperation both in peacetime and in wartime.
LDaily: Does the company have mechanisms for evaluating and monitoring business risks in conditions of war, and how do they work?
O. Panchenko: A good business is a successful business. Every successful business should have tactics and strategy, besides, business should be confidently controlled, have certain safeguards, resources, and reserves.
Of course, having been in the Ukrainian market in various forms of economic activity for 25 years, we have various mechanisms for assessing and monitoring business risks both in civilian times and during military operations. This was influenced by the peculiarities of the economic development of our country. Two revolutions, the economic crisis of 2008, the war that began in 2014, made us hardened, foresighted, and sensitive.
Therefore, the previously issued “Policy of Sika Ukraine Ltd. during military aggression” is the result of our accumulated experience.
In addition, of course, like many Ukrainian companies, we use economic tools such as constant market analysis, marketing research, situation modeling, simulations, and more.
LDaily: Have there been changes in your company’s strategy during the war in Ukraine? What were the main changes and how did they affect your business?
O. Panchenko: There were no significant changes in our business strategy. Using military terminology, one could say that we retreated to pre-prepared positions, that we successfully used and use intelligence and counterintelligence. And once again, I want to emphasize that the key criterion for successful business is the human factor, people.
LDaily: Were you able to keep the entire team? What was the most difficult thing? What security measures are taken to protect employees?
O. Panchenko: We kept the entire team. None of the employees left us. We even increased the number of staff. I am proud of our team – motivated, professional, and very friendly. The priority is safety and caring for each other.
LDaily: Can you tell us about recent projects or initiatives that Sika has participated in?
O. Panchenko: Business is only a part of the projects of Sika Ukraine. We have never stayed away from social and humanitarian projects. From the first days of military aggression, we helped all those in need and affected. Our employees were involved in humanitarian aid warehouse work. We supplied a large amount of medicines and medical supplies to hospitals. We provided everything necessary for refugees, especially children, in temporary shelters in Western Ukraine. Together with Polish colleagues, we supplied various equipment for our army. We assisted in the rehabilitation of the wounded together with the company “Dobriy brat” (Good brother). With Swiss and German partners, as well as the Lviv Atelier of Olena Guseva, we were involved in supplying 2000 tourniquets for military needs. We assisted in the supply of concrete for the Lviv animal shelter.
Together with the Dmytro Chekalkin Foundation, by June 1, 2022, the Day of Child Protection, we printed educational coloring books for refugee children.
All staff of the company underwent a course in providing first aid from the Red Cross.
Many different and interesting projects have been implemented.
By the first anniversary of the war, we released the book “Sika Ukraine. À la guerre comme à la guerre. 2022 — …….”
On my own behalf, I thank all the employees of Sika Ukraine for their courage and resilience, for their faith and trust, for their patriotism and high professionalism.
Victory will be ours.
Slava ZSU! (Glory to the Armed Forces of Ukraine!)
Slava Ukraini! (Glory to Ukraine!)
Yours sincerely,
Oleksandr Valentinovich Panchenko.
