Harsh Economy: Another Multinational Coy Exits Nigeria After 14-Year Operation
LAGOS MAY 2ND (NEWSRANGERS)-The American multinational and makers of “Huggies”, Kimberly-Clark, has exited the Nigerian market, citing the harsh economy.
The company’s decision comes after it has operated locally in Nigeria for 14 years, according to a statement issued on Friday.
According to the statement, the company intended to adjust global strategic priorities and the prevailing economic conditions in Nigeria.
“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 statement read.
The firm announced that it would close its manufacturing facilities and commercial office in Lagos State, ending production, marketing, and sales of Huggies and Kotex products in Nigeria.
The company informed everyone that its first priority was to uphold its commitments and guarantee that workers and partners are treated fairly and respectfully during the transition.
Kimberly-Clark had invested significantly in Nigeria, opening a factory in the Ikorodu area of Lagos in 2022, which was estimated to cost over $100million.
The company’s exist follows a recent trend of multinational corporations exiting the Nigerian market.
In August 2023, GlaxoSmithKline Consumer Nigeria Plc announced plans to transfer its business activities to a third-party organisation.
Similarly, in November 2023, French pharmaceutical company, Sanofi-Aventis Nigeria Limited, halted its direct operations in the country.
By December 2023, Procter and Gamble also revealed plans to shift from local production to importing its products.
The departure of these international companies signals a challenging business environment in Nigeria, prompting reassessments of market strategies by global firms.
Saharareporters
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Posted by News Rangers
on Jun 2 2024. Filed under Business, National.
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