Nairametrics reports that Diaper and
sanitary pad manufacturer, Kimberley Clark will soon announce an
imminent shutdown of its Ikorodu production facility two years after
investing $100 million in Nigeria. Sources within the company informed
Nairametrics that the plant has been producing below capacity from late
2023 into 2024 due to the harsh economic environment within the
country.
In 2022, the company inaugurated a $100 million production
facility in Ikorodu, Lagos state to restart operations after a similar
closure of operations in 2019 following a strategic review of its
business.Kimberly-Clark began operations in Nigeria in 2012 but stopped
due to unfavourable economic conditions after five years in 2019 to
later restart in 2021. The company produces Huggies diapers, sanitary
pads, Kotex and other hygiene and personal care products. KC is a listed
multinational on the New York Stock Exchange with the majority of its
shares held by institutional investors like Blackrock Inc., Vanguard
Group, Morgan Stanley etc.
According to the source who claimed
anonymity, the company since late 2022 have battled with high energy
costs, raw materials and reduced demand from customers due to the
prevailing economic situation.This has resulted in downsizing and
reduced production time from every day of the week to just Mondays to
Thursdays. The company currently spends around N100 million on power
generation monthly aside from maintenance costs and its monthly fixed
spend on operations has risen over N500 million.
✍️“feel free to disagree in the comments
👀 ☝️👆 & let JAIYEORIE know what U think!”
📎
0 Comments