HUGGIES MAKER, KIMBERLY-CLARK TO STOP PRODUCTION THREE YEARS AFTER INVESTING $100m IN NIGERIA
Kimberly-Clark, the manufacturer of Huggies and other hygiene products, is set to shut down its Ikorodu production facility after investing $100 million in Nigeria. The plant has been operating below capacity since late 2023 due to harsh economic conditions. Kimberly-Clark initially began operations in Nigeria in 2012 but halted in 2019, only to restart in 2021.
Challenges such as high energy costs, expensive raw materials, and reduced consumer demand have plagued the company, leading to downsizing and reduced production days. The company's monthly operational costs exceed N500 million, including N100 million on power generation.
This closure mirrors the struggles of other manufacturers like Procter & Gamble, which ceased production in Nigeria after a significant investment. High production costs, currency depreciation, and weak consumer purchasing power are common issues driving these exits. The shutdown is a setback for Nigeria's efforts to attract foreign direct investment and may lead to higher costs for diapers and sanitary products due to increased imports.
Kimberly-Clark, the manufacturer of Huggies and other hygiene products, is set to shut down its Ikorodu production facility after investing $100 million in Nigeria. The plant has been operating below capacity since late 2023 due to harsh economic conditions. Kimberly-Clark initially began operations in Nigeria in 2012 but halted in 2019, only to restart in 2021.
Challenges such as high energy costs, expensive raw materials, and reduced consumer demand have plagued the company, leading to downsizing and reduced production days. The company's monthly operational costs exceed N500 million, including N100 million on power generation.
This closure mirrors the struggles of other manufacturers like Procter & Gamble, which ceased production in Nigeria after a significant investment. High production costs, currency depreciation, and weak consumer purchasing power are common issues driving these exits. The shutdown is a setback for Nigeria's efforts to attract foreign direct investment and may lead to higher costs for diapers and sanitary products due to increased imports.