Wednesday, February 06, 2019 8.30PM / Ottoabasi Abasiekong for Proshare
Greif Nigeria PLC a manufacturing company formerly known as Van Leer Containers (Nigeria) Plc has taken a decision to suspend its operations for now in the country.
This was part of the statement of the Chairman of the Company Mr Adedayo Olowoniyi in the 2018 Financial Year report of the company.
He stated that this is due to the fact that the company experienced challenging market conditions, as well as performing below operating and material costs.
Speaking further the Chairman established the fact the company worked assiduously to prevail through the challenging business environment, but still had issues in cost-recovery through several price increases in the market, despite adopting cost reduction measures and driving efficient methods.
By losing important customers halfway through the year and has not been able to recover cost, despite reducing its prices.
According to him “The trends that have started mid 2018 still continues in the first (fiscal) quarter of 2019. As a result of increased competition and a stagnant market for steel drums, we do not see an improvement happening in the near future. Greif Nigeria has been operating well below operating costs, even below direct material costs, and sees no signs of improved market conditions. Therefore, we have decided to stop operations with immediate effect. The coming months we will investigate on if and/or how we can continue with Greif Nigeria”.
Greif Nigeria Plc is listed on the floor of the Nigeria stock exchange and manufactures and markets steel drums and plastic containers.