Kimberly-Clark Closes Nigerian Plant Due to Soaring N100 Million Monthly Power Costs

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Kimberly-Clark is set to close its production facility in Nigeria due to declining output driven by tough economic conditions. The company invested $100 million over three years but faced hurdles like rising energy costs, raw material shortages, and decreasing customer demand.

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Since late 2022, Kimberly-Clark has reduced shifts and operational days to cut costs. Production has decreased since late 2023 and continued into 2024, according to Nairametrics. Despite resuming operations in 2021 after a previous closure in 2019, economic challenges have persisted.

Kimberly-Clark produces Huggies diapers, Kotex sanitary pads, and other hygiene products. It is a multinational listed on the New York Stock Exchange, with major shareholders including BlackRock Inc., Vanguard Group, and Morgan Stanley.

The company’s power generation costs have soared to around N100 million monthly, with total fixed operational expenses exceeding N500 million.

The economic downturn in Nigeria has impacted both small enterprises and large corporations, leading several companies, such as Procter & Gamble, GlaxoSmithKline, and Equinor, to exit the country. Kimberly-Clark’s planned departure further highlights the severe economic challenges facing the nation.

Godwin Okafor, The Naija247news
Godwin Okafor, The Naija247newshttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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