Huggies Producer Exits Nigeria, Cites ‘Refocused Priorities, Economic Developments’
Kimberly-Clark, makers of Huggies, says it plans to stop local manufacturing and sales in Nigeria after 14 years of operation.
The American multinational corporation made the announcement in a statement on Friday.
According to the statement, the decision was made owing to its recently refocused corporate priorities globally as well as economic trends in the country.
“Kimberly-Clark today announces it has made the difficult decision to exit its business in Nigeria after almost 15 years, due to recently refocused company strategic priorities globally as well as economic developments in the country,” the company said.
“Kimberly-Clark will close its manufacturing facility and commercial office in Lagos and will no longer manufacture, market, or sell its Huggies and Kotex products in the country.”
The company said its top priority will be to fulfil its obligations and ensure that employees and partners “are treated with fairness and respect”.
In 2022, Kimberly-Clark opened its factory estimated at over $100 million in the Ikorodu area of Lagos.
The pullout of the international company follows the recent exit plans of multinationals from the country.
In August 2023, GlaxoSmithKline (GSK) Consumer Nigeria Plc announced plans to cease operations, transferring its business activities to a third-party organisation.
Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, in November 2023, also halted its direct operations in the country.
In December 2023, Procter & Gamble (P&G), an American multinational consumer goods company, said it has plans to transition from local production to solely importing its products.
The news about Kimberly-Clark, the maker of Huggies, leaving Nigeria after 15 years due to the challenging business climate and shifting corporate priorities. Follows similar exits by other multinationals like GlaxoSmithKline, Sanofi-Aventis, and Procter & Gamble.
ReplyDeleteWhile it's disheartening to see these companies leave, I believe this situation presents a significant opportunity for us. Instead of seeing it as a setback, we can view it as a chance to step up and fill the void.
There is now a clear market gap for locally-produced baby products, pharmaceuticals, and consumer goods.We can encourage Nigerian entrepreneurs and investors to reinvest in our economy by establishing companies to manufacture and replace these goods.
It's time to channel our resources into building local industries rather than keeping money in foreign banks or spending extravagantly on luxury items.
Let's use this moment to drive change and support homegrown businesses that can contribute to our nation's economic growth and stability. Together, we can turn this challenge into an opportunity for a stronger, self-reliant Nigeria.
All this best,
Prince Adekola Adenle
https://adekolaadenle08.blogspot.com/?m=1