To further strengthen its local manufacturing footprint in Nigeria, leading consumer goods company, Procter & Gamble (P&G) has announced the expansion of its supply chain manufacturing operations.
P&G Nigeria has entered a manufacturing partnership with the SIL Group and Ugee Chemicals for the end-to-end manufacturing of locally produced raw materials as well as Ariel® detergent and other dry laundry powders all in one site. The SIL Group is a local partner, who is also the largest producer of HLAS, a key ingredient in the production of P&G products.
This expanded operations aims to promote a more effective business operation across its value chain in Nigeria. The winning strategy of creating local champions across the value chain, promotes technology transfer, builds Nigerian capabilities which will in turn increase operational efficiencies, enable synergies of scale, and delivers better value to all our stakeholders and partners.
With this expanded operations, P&G continues to reaffirm its commitment to investing in Nigeria and Nigerian talents now and for the long haul, whilst increasing its economic and social footprint, in support of the diversification and localisation objectives of the Nigerian Government.
The creation of local champions across the value chain of production and distribution, is a key strategy to P&G’s continued success in Nigeria. This transition enables backward integration processes, as raw materials will now be produced at the site, alongside laundry detergents and other categories. This creates potential to produce and distribute on a much larger scale and advances Nigeria’s readiness to optimise the implementation of the African Continental Free Trade Area (AfCFTA), enabling the industry to earn forex for the country through export and advance inclusive growth.
P&G strongly believes that their Nigerian business has long term potential and is committed to winning in Nigeria leveraging Nigerian capability, Nigerian partners, and Nigerian talent to better serve its consumers.
Over the past three decades, P&G has been a model investor in Nigeria; investing economically and socially in partnership with local suppliers, agencies, contract manufacturers and the Government to deliver key development objectives of inclusive growth. P&G has significant investments and manufacturing footprint in Nigeria including contract manufacturing operations in Laundry Care, Fem Care, Oral Care and Beauty Soaps.
The SIL Group has been operating in Nigeria and has had a presence in the country for the past 47 years. Since SIL’s inception it has been a pioneer in technology advancement and delivering localisation of chemical manufacturing since 2002. The group has invested significantly to expand its manufacturing capacity to service the local requirements, as a key partner in the Nigerian Detergent Value Chain.