P&G Strengthens Local Manufacturing and Supply Chain, Partners SIL Group and Ugee Chemicals
To further strengthen its local manufacturing footprint in Nigeria, the leading consumer goods company, Procter & Gamble (P&G) has announced the expansion of its supply chain manufacturing operations. P&G Nigeria has entered into a manufacturing partnership with SIL Group and Ugee Chemicals for the end-to-end manufacture of locally produced raw materials as well as ArielÂ® detergent and other dry laundry powders at one site. The SIL Group is a local partner, which is also the largest producer of HLAS, a key ingredient in the production of P&G products.
This expanded operation aims to promote a more efficient business operation throughout its value chain in Nigeria. The winning strategy of creating local champions throughout the value chain, promotes technology transfer, strengthens Nigerian capacities which in turn will increase operational efficiency, enable synergies of scale and deliver better value to all our stakeholders and partners.
With these expanded operations, P&G continues to reaffirm its commitment to invest in Nigeria and Nigerian talent now and for the long term, while increasing its economic and social footprint, in support of the Nigerian government’s diversification and localization goals.
Building local champions throughout the production and distribution value chain is a key strategy for P&G’s continued success in Nigeria. This transition allows for upstream integration processes, as raw materials will now be produced on site, alongside detergents and other categories. This creates a much larger scale production and distribution potential and advances Nigeria’s readiness to optimize the implementation of the African Continental Free Trade Area (AfCFTA), allowing the industry to earn foreign exchange for the country through exports and inclusive growth.
P&G strongly believes that its Nigerian business has long term potential and is committed to winning in Nigeria by leveraging Nigerian capabilities, Nigerian partners and Nigerian talents to better serve its consumers.
For 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 government to achieve key development goals of inclusive growth. P&G has significant investments and a manufacturing footprint in Nigeria, including contract manufacturing operations in linen care, feminine care, oral care and beauty soaps.
The SIL group is present in Nigeria and has been present in the country for 47 years. Since the inception of SIL, it has been a pioneer in technological advancement and localization of chemical manufacturing since 2002. The group has invested significantly to expand its manufacturing capacity to meet local requirements, as a partner key to the Nigerian detergents value chain.