After 14 years, maker of Huggies diapers, Kotex, departs Nigeria
Story from Usman UMAR
An American global corporation known for its famous “Huggies” brand, Kimberly-Clark, has declared its intention to cease manufacturing and sales operations in Nigeria.
This decision marks the conclusion of its 14-year presence in the country.
In a press release issued on Friday, the company revealed that it is discontinuing its business in Nigeria due to revised global strategic priorities and the current economic circumstances in the country.
“Kimberly-Clark has made the tough choice to withdraw from its operations in Nigeria after nearly 15 years, in line with the company’s updated worldwide strategic focus and economic conditions in the nation,” the statement stated.
The company plans to close its factory and office in Lagos, putting an end to the production, promotion, and distribution of its Huggies and Kotex products in Nigeria. Kimberly-Clark reassured stakeholders that it remains committed to fulfilling its obligations and ensuring that employees and partners are treated fairly and respectfully throughout the transition.
Having invested heavily in Nigeria, including the establishment of a factory in the Ikorodu region of Lagos in 2022, estimated at more than $100 million, Kimberly-Clark’s departure is significant.
The corporation’s departure is part of a trend that has seen other multinational companies exit the Nigerian market.
In August of 2023, GlaxoSmithKline Consumer Nigeria Plc announced its intentions to transfer its operations to a third-party entity.
Similarly, in November 2023, Sanofi-Aventis Nigeria Limited, a French pharmaceutical company, ceased its direct operations in the country.
Read also:Consumer protection orders British American Tobacco to pay $110 million fine or exit Nigeria
By December 2023, Procter and Gamble disclosed plans to transition from local manufacturing to importing its products.
The departure of these international companies suggests a challenging business environment in Nigeria, prompting global firms to reevaluate their market strategies.
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