P&G Nigeria shuts down $300m Agbara plant one year after establishment, explains why
A Fast-moving Consumer goods (FMCG) company in the Nigerian market, Procter & Gamble (P&G) has formally shut down operations in its Agbara plant, Ogun State, Nigeria.
The firm said the decision is to restructure its Nigerian operation.
Recall that the company expanded its footprint in Nigeria in June 2017 with the commissioning of the state of the art production line by Vice President Yemi Osinbajo and Governor of the state, Ibikunle Amosun.
The plant reportedly cost the firm about $300 million to complete.
The plant is for its ‘Always’ and Pampers brand of sanitary pads and diapers.
The company in a statement released on Thursday morning said it will also strengthen its manufacturing operation plant in Ibadan, Oyo State.
In a statement signed by Lola Adenuga of the company’s Communications Unit, P&G said it will scale up its contract operations and invest in local talents.
“P&G is restructuring its Nigeria manufacturing operations to deliver a more effective business operation for now and sustainably for the future,” the statement read in part.
“This will entail an exit from production in its Agbara plant. We will strengthen our manufacturing operations in the Ibadan plant, scale up our contract manufacturing operations as well as continue to invest in our local talents.
“P&G is a foremost global consumer goods company providing world-class products sold in over 180 countries worldwide. This is purely a business decision for a sustainable and innovative business operation in Nigeria.”
The statement said P&G is a model investor in Nigeria, investing in technology transfer in partnership with local suppliers, agencies, contract manufacturers and the government to deliver key development objectives of inclusive growth.
“We have been operating with world class standards in Nigeria for over 25years,” the company said. “We believe in Nigeria’s potential and are here to stay for the long haul as a key player and part of Nigeria’s growth story.”
However, concerning staff welfare after the shutdown, a top official of the company of spoke on condition of anonymity said: “About 30 staff will be left who may either be outsourced or deployed to our only remaining plant in Nigeria.”
