After nearly 15 years, American personal care company Kimberly-Clark (KC), known for manufacturing Huggies diapers and sanitary pads, is set to shut down its operations in Nigeria.
Sources indicate that the company’s production facility in Ikorodu, Lagos, has been operating below capacity from late 2023 into 2024 due to the harsh economic environment within the country.
The process of shutting down has already begun, with nearly 90 percent of employees being laid off. A person with direct knowledge reported that about 150 workers have been informed about the layoffs.
The company had inaugurated a $100 million production plant in 2022 to restart operations after a similar closure in 2019 following a strategic review of its business. KC began operations in Nigeria in 2012 but halted in 2019 due to unfavorable economic conditions, only to restart in 2021. The company produces Huggies diapers, sanitary pads, Kotex, and other hygiene and personal care products.
An anonymous source revealed that since late 2022, the company has struggled with high energy costs, increased raw material expenses due to its reliance on imports, and reduced customer demand caused by the prevailing economic situation. This has led to downsizing and a reduction in production days from every day of the week to just Mondays through Thursdays.
“Our first two years were fantastic in terms of sales growth and market shares within the diaper industry. Late 2022 and 2023 were really bad years for the company due to the economic situation,” the source stated.
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