Kimberly-Clark will soon shut down its Ikorodu production facility, citing economic challenges despite a $100 million investment two years ago. High energy costs, expensive raw materials, and reduced customer demand have forced the company to reduce shifts and implement cost-cutting measures. The closure reflects broader industry challenges, mirroring exits by Procter & Gamble and strategic reviews by PZ Cussons, impacting Nigeria’s drive for foreign direct investment Diaper and sanitary pad manufacturer, Kimberley Clark will soon announce an imminent shutdown of its Ikorodu production facility two years after investing $100 million in Nigeria.
Sources within the company informed Nairametrics that the plant has been producing below capacity from late 2023 into 2024 due to the harsh economic environment within the country. In 2022, the company inaugurated a $100 million production facility in Ikorodu, Lagos state to restart operations after a similar closure of operations in 2019 following a strategic review of its business. Related Stories Kimberly-Clark began operations in Nigeria in 2012 but stopped due to unfavourable economic conditions after five years in 2019 to later restart in 2021.
The company produces Huggies diapers, sanitary pads, Kotex and other hygiene and personal care products. KC is a listed multinational on the New York Stock Exchange with the majority of its shares held by institutional investors like Blackrock Inc., Vanguard Group, Morgan Stanley etc.
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