Table and Sachet Water Producers in Enugu State to Close Factories Due to High Production Costs

Table and sachet water producers in Enugu State, Nigeria, have announced plans to shut down and suspend production in all water-producing factories due to the high cost of production.

This decision was made by the Association of Table Water Producers (ATWAP) after an emergency meeting on February 8, 2024.

The ATWAP, Enugu State Chapter, cited a 500% increase in the prices of raw materials, including nylon, parking bags, purifying materials, and other factors of production, as the primary reason for the decision.

Other factors contributing to the high cost of production include the high electricity tariff, diesel prices, haulage/transportation, and staff costs.

The association also mentioned the upward review of various fees charged by state and local government agencies within their areas of operation as an additional burden.

The statement released by the ATWAP, Enugu State Chapter, stated that many producers had already shut down their factories due to the high cost of materials and other production challenges.

As a result of these challenges, the ATWAP has decided to close all table water-producing factories in the state from February 12 to February 15, 2024, to seek a workable solution to the problems faced by its members.

The association has also resolved to increase the price of a bag of sachet water (20 sachets) to N300, effective from February 16, 2024, to enable producers to sustain their operations and rescue their businesses from total collapse.

Any defaulter/violator of this resolution will be fined N200,000 per truck or driver caught by the ATWAP Task Force, which has been mandated to enforce the exercise.

ATWAP members are advised to clean up their equipment and keep their environment clean during the factory shutdown, as the Task Force will soon embark on factory inspections to ensure compliance with standard operating procedures.

The ATWAP, Enugu State Chapter, has appealed to dealers and consumers for their understanding and cooperation during this period, emphasizing the need to remain in business despite the challenging economic situation.