A leading FMCG (Fast-moving Consumer goods) in the Nigerian market, Procter & Gamble (P&G), has provided a reason for deciding to shut down its Agbara plant.
The firm said the decision is to restructure its Nigerian operation.
The company in a statement sent to Premium Times Thursday morning said it will also strengthen its manufacturing operation plant in Ibadan, Oyo State.
Premium Times exclusively reported on Wednesday that the company has perfected plans to shut down its Agbara plant, located inside Agbara Industrial Estate, Ogun State.
In a statement signed by Lola Adenuga of the company’s Communications Unit, and made available to Premium Times Thursday morning, 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.”
The company expanded its footprint in Nigeria in June 2017 with the commissioning of a state of the art production line in Agbara, which reportedly cost the firm about $300 million to complete.
The shutdown of the plant is coming as Africa’s largest economy struggles to consolidate on its recovery plans about a year after it slipped out of recession.
About 272 manufacturing plants were shut down across the country in 2016, largely during the recession period, according to the Manufacturers Association of Nigeria.