Proctor & Gamble, the global consumer products brand has indicated that it is shutting down its $300million plant about a year after commissioning its largest Nigerian plant.
The leading FMCG (Fast-moving Consumer goods) is set to shut the production plant situated in Agbara Industrial Estate, Ogun State,
The company expanded its footprint in Nigeria in June 2017 with the commissioning of the state of the art production line in Agnara, Ogun State of Nigeria, which reportedly cost the firm about $300 million to complete.
The plant is for its ‘Always’ and Pampers brand of sanitary pads and diapers.
Sources at the firm said about 120 workers are being laid off as part of the shut down with some of them already receiving their disengagement letters.
“About 30 staff will be left who may either be outsourced or deployed to our only remaining plant in Nigeria,” a company source was quoted as saying.
The company, a multinational FCMG with stakes in about 180 countries of the world, is the producer of Always sanitary pad, Pampers, Ariel detergent, Oral B toothpaste, Gillette shaving stick, among other products.
But barely a year after the launch of the plant, the company has found it difficult to break even due to a myriad of factors.
Sources familiar with the development reported that the company is battling with the challenge posed by government policies that regulate importation of raw materials for its production. It is explained that the cost of importing raw materials was becoming unbearable for the company, which has refused to get involve in shady deals in order to cheat the system and ease importation.
“It is so expensive to import these raw materials which are not produced in Nigeria. Other companies take the short cut by manoeuvring the system, but we cannot,” said a top official of the troubled manufacturing giant.