Two years after US diapers and sanitary pads manufacturer Kimberly-Clark invested $100 million to restart operations in Nigeria, it has decided to close its production facility in Ikorodu in Lagos state.

African media reports attributed the decision to severe economic conditions that have affected production and profit margins, apart from high energy costs, expensive raw materials and reduced customer demand.

Kimberly-Clark began operations in Nigeria in 2012, producing popular hygiene products like Huggies diapers and Kotex sanitary pads. Its operations there, however, stopped in 2019 due to unfavourable economic conditions.

In 2022, Kimberly-Clark inaugurated the $100-million production facility in Ikorodu. Despite initial success, the company has struggled with challenges there since late 2022. The plant has been reportedly producing below capacity since late 2023. Its monthly fixed operational costs have risen to over N500 million.