Kimberly-Clark, manufacturers of Huggies and Kotex diapers has announced that it will be closing down its factory in Nigeria in the 2nd quarter of 2019. Kimberly-Clark West Africa, a subsidiary of the US-based Kimberly-Clark Corporation, began operations in 2012 in Lagos, Nigeria.
The American personal care company had earlier stated that it was shutting down 10 of its 91 factories worldwide. It disclosed that it was shutting down its factory in Lagos to build a new one in its place because the increased demand of its products necessitated the decision to advance its technological capacity.
In a statement signed by Amel Yimer, Communications Business Partner of the company, “As a respected company with established relationships in Nigeria, we are aware of the impact this closure may have and of our responsibilities towards our workforce.”
“Regrettably, the decision means that for now, some 60 permanent employees have been made redundant.
“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.”
“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.
“The company remains fully committed to the Nigerian market, where it will expand its commercial team and open an additional office in Lagos during 2019.”
In January 2018, Kimberly-Clark initiated the 2018 Global Restructuring Program in order to reduce the company’s structural cost base and enhance the company’s flexibility to invest in its brands, growth initiatives and capabilities critical to delivering future growth. The program will make Kimberly-Clark’s overhead organization structure and manufacturing supply chain less complex and more efficient and is expected to broadly impact all of the company’s business segments and organizations in each major geography.
The company expects the program will generate annual pre-tax cost savings of $500 to $550 million by the end of 2021, driven by workforce reductions along with manufacturing supply chain efficiencies.
In 2018, Kimberly-Clark achieved sales of $18.5 billion and an operating profit of $2,229 million.
