Huggies maker ceases operations amid high energy costs, weakened demand
Multiple media outlets are reporting that Kimberly-Clark plans to close its production facility in Nigeria due to declining production and difficult economic conditions. The maker of Huggies diapers and Kotex feminine care products began production in Nigeria in 2012 but paused after five years in 2019 due to unfavorable conditions. Operations resumed in 2021 when the company opened a $100 million facility in Lagos. Since 2022, the company has downsized shifts and cut down on running days to reduce costs.
According to sources, the company has battled with high energy costs, raw materials and reduced demand from customers due to the prevailing economic situation.
Last year, K-C competitor Procter & Gamble announced it would shift its efforts in Nigeria to an imports only model.
