$300 million plant set to be shut down by P&G in Ogun State,
The plant, located in Agbara Industrial Estate, Ogun State, had been commissioned in 2017 by Vice President Yemi Osinbajo, and had cost a reported $300 million.
According to Premium Times, the plant, which produces Always sanitary pads and Pampers diapers, is set to be shut down after running at a loss.
A company source who spoke to Premium Times said, “About 30 staff will be left who may either be outsourced or deployed to our only remaining plant in Nigeria,” with 120 to be laid off.
A top official of the company who spoke to the paper said they were shutting down because of the cost of importing raw materials and their unwillingness to manoeuvre the system.
It is so expensive to import these raw materials which are not produced in Nigeria. Other companies take the short cut by maneuvering the system, but we cannot.
Our competitors invested much less in their factory, can maneuver their way in the system, and thus produce and sell for much less. We cannot do that. Our investment in Agbara is arguably the largest single investment by a non-oil firm in Nigeria. But we just have to shut it. The loss is much.
Photo Credit: Premium Times