Kimberly-Clark intends to shut down its production facility in Nigeria.
This, according to an insider is due to declining production caused by challenging economic conditions.
“Our first two years were fantastic in terms of sales growth and market shares within the diaper industry. Fast forward to late 2022 and 2023 were really bad years for the coy due to the economic situation,” the source disclosed.
“Earlier this year, the coy had to downsize to 2 shifts from 4 shifts. We run 24 hours 7 days and 365 days before but currently, we don’t run on Friday, Saturday, and Sunday anymore because of the economic situation. There is already an embargo on external recruitment. The company is looking for ways to reduce cost since it is not making a profit.”
Despite investing $100 million in Nigeria over three years, the company faced obstacles such as soaring energy costs, scarcity of raw materials, and decreasing customer demand.
The corporation manufactures Huggies diapers, feminine hygiene pads, Kotex, and other cleanliness and self-care items. KC is a publicly traded global company on the New York Stock Exchange with most of its stocks owned by big financial firms such as Blackrock Inc., Vanguard Group, Morgan Stanley, etc.
The informant also mentioned that the rising production expenses are primarily due to higher prices of raw materials, mainly because the company depends on imported resources.
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