After nearly 15 years, the American personal care company Kimberly-Clark (KC), manufacturers of Huggies diapers and sanitary pads, is set to shut down its operations in Nigeria.
Reports indicate that the company’s production facility in Ikorodu, Lagos, has been operating below capacity since late 2023 due to the harsh economic environment in the country.
The shutdown process has already begun, with nearly 90 percent of employees laid off. Around 150 workers were informed about the layoffs, according to a person with direct knowledge.
The company inaugurated a $100 million production plant in 2022 to restart operations after a similar closure in 2019 following a strategic review of its business.
KC began operations in Nigeria in 2012 but halted in 2019 due to unfavourable economic conditions, resuming again in 2021. The company produces Huggies diapers, sanitary pads, Kotex, and other hygiene and personal care products.
A source, speaking anonymously, said the company has struggled with high energy costs, increased raw material costs due to import reliance, and reduced customer demand since late 2022. These challenges have led to downsizing and reduced production days from every day of the week to just Mondays through Thursdays.
“Our first two years were fantastic in terms of sales growth and market shares within the diaper industry. Late 2022 and 2023 was really bad years for the company due to economic situation, the source stated.
The closure mirrors exits by Procter & Gamble (P&G) and strategic reviews by PZ Cussons, meaning that two of the three leaders in the diaper and personal care industry in Nigeria (P&G and KC) have ended production in the last one year.
