Personal hygiene giant Kimberly Clark opens $100m manufacturing plant in Lagos State

AMERICAN personal care product giant Kimberly Clark has opened a new $100m plant in Ikorodu in Lagos State in a major foreign direct investment project aimed at allowing the company to manufacture products for the domestic market locally.

Kimberly Clark, the makers of Huggies diapers, is a major supplier to the local Nigerian toiletries sector and is hoping that with this investment, it will wrestle some market share from other leading brands. In support of the project, the Nigerian and the Lagos State government have pledged a combined amount of N2.5bn to develop adjoining infrastructure leading up to the factory site.

Headquartered in Texas, Kimberly Clark has a presence around the world, manufacturing hygiene and medical products. It began operations in Nigeria in 2012, with the introduction of Huggies diapers into the market in 2015 and Kotex sanitary pads in 2019.

However, it has since faced stiff competition from pampers made by Proter & Gamble, the US firm and Molfix, owned by the Turkish giant Hayat Kimya. Kimberly-Clark’s new facility has the capacity to create over 1,000 direct and 5,000 indirect jobs with the potential to scale up operations over the next three to five years.

This new factory will produce diapers under the Huggies brand name. Claire Pierangelo, the US consul-general in Nigeria, said the country was proud to be one of the largest foreign investors in Nigeria as leading American brands expand their investment portfolio, providing job opportunities and supporting economic diversification objectives.

She noted that Nigeria is a critical market for US companies and improving the investment climate would result in more milestones for both countries. At the opening ceremony, vice president Professor Yemi Osinbajo cut the ribbon to unveil the factory alongside Ms Pierangelo and  Lagos State governor Babajide Sanwoolu.

Ms Pierangelo  said: “The US mission to Nigeria continues to work with our counterparts in the Nigerian government to promote an environment that is inviting to US businesses. Through this model of cooperation, we will realise mutually beneficial outcomes such as increasing investment, capacities for job creation and partnerships, while improving the lives of workers and consumers.”

Explaining that the commissioning of the new facility showcases the commitment of the US to deepen its trade and investment ties with Nigeria, Ms Pierangelo commended Kimberly-Clark for its investment. She also praised the company’s contribution to improving hygiene and the health of the people of Nigeria.

Professor Osinbajo added: “Kimberly-Clark West Africa has grown from just being an investor in Nigeria to a formidable partner in the actualisation of Nigeria’s economic objectives, by adding value through diversification. The company has led, commendably, important social investments, including, sponsoring the education of the dream catchers who danced here, just a few moments ago and this factory, I trust, will only signal the beginning of greater investment in this and other sectors.”

Also, the Nigerian Investment Promotion Commission said it was proud to welcome Kimberly Clark and be associated with its success story. It added that when Kimberly Clark set out to build the plant, they did not envisage that a global pandemic will catch up with the project however, in a show of resilience, they carried on with the 18-month long task of setting up even through the peak of Covid-19.