Manufacturers of Huggies and Kotex brands of diapers, Kimberly-Clark have announced the decision to shut down its factory in Lagos, Nigeria, with the intention to expand its manufacturing base in the State.
The American multinational personal care company said it will close down the factory as part of the company’s plans to accommodate growing demands from its customers within the country.
Kimberly-Clark intends to shut down its factory in the second quarter of this year, 2019, and build a larger manufacturing factory in Lagos State that will meet the needs of its customers for its products.
The company stated that the new factory to be built will house enhanced technology and capabilities, which was concluded upon after a strategic review of the company’s business model and decision to improve investment in Nigeria.
“Kimberly-Clark can confirm that it will be closing its current factory in Lagos, Nigeria, in the second quarter of 2019, while it is in the process of building a new factory.
“This decision was made following a strategic review of its business model with the objective of increasing presence and further investments in Nigeria in the near future.”
Negative impact in the expansion process
However favourable the expansion drive is meant to be in the long term, the company confirmed in its statement that the decision will not be favourable in the short-term, as the factory shut down will cost 60 per cent of the employees their job.
“Regrettably, the decision means that for now, some 60 permanent employees have been made redundant.”
While acknowledging the impact of the factory shut down, the company said it is committed to ensuring its workforce are properly supported during the period.
“It is a responsibility we take very seriously and we are working to ensure our employees are supported as much as possible during this difficult time,” the statement added.
The company, however, stated that it is committed to contributing to the economic growth of the country, promising additional offices within the year.
“Kimberly-Clark remains fully committed to the Nigerian market, where it will expand its commercial team and open an additional office in Lagos in 2019.”
Kimberly-Clark Corporation is an American multinational personal care corporation that produces mostly paper-based consumer products. Kimberly-Clark brand name products include Kleenex facial tissue, Kotex feminine hygiene products, Cottonelle, Scott and Andrex toilet paper, Wypall utility wipes, KimWipes scientific cleaning wipes, and Huggies disposable diapers and baby wipes.