Karex Berhad, the world’s top c0nd0m producer, says it plans
to raise its prices by 20 percent to 30 percent due to supply chain disruptions
as a result of the Iran war.
The company, based in Malaysia, produces over five billion
c0nd0ms annually and is a supplier to leading brands like Durex and Trojan.
The company also supplies to state health systems such as
Britain’s NHS and global aid programmes run by the United Nations.
Goh Miah, the company’s CEO, told Reuters that since the
conflict began in late February, the cost for everything from synthetic rubber
and nitrile used in manufacturing c0nd0ms to
packaging materials and lubricants such as aluminium foils and silicone oil,
have increased.
Kiat said Karex is also seeing a surge in c0nd0m demand due
to rising freight costs and shipping delays which have left many of its
customers with lower stockpiles than usual.
“The situation is definitely very fragile, prices are
expensive. We have no choice but to transfer the costs right now to the
customers,” he said.
The CEO said Karex’s shipments to destinations such as
Europe and the United states are now almost two months to
arrive, compared to a month previously.
“We’re seeing a lot more c0nd0ms actually sitting on vessels
that have not arrived at their destination but are highly
required,” he said.
He added that many developing countries do not have enough
stock because it takes time for the products to reach them.
He said Karex has enough supplies for the next few months
and is looking to boost output to meet growing demand.
The company joins a growing list of companies, including
medical glove makers, facing supply chain bottlenecks as the Iran war disrupts
procurement of raw materials.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com