High Production Costs Force Closure of Table and Sachet Water Factories in Enugu

High Production Costs Force Closure of Table and Sachet Water Factories in Enugu

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The Association of Table Water Producers (ATWAP) has announced the temporary shutdown of all water production facilities in Enugu State due to the increasingly high cost of production, rendering operations unsustainable.

The decision was communicated through a statement jointly issued by Mr. Tony Edike, Chairman of ATWAP Enugu State Chapter, and Sir Clems Nwamadi, the State Secretary, following an emergency meeting held on February 8, 2024, in Enugu to address the challenges faced by its members.

Starting from Monday, February 12, 2024, until Thursday, February 15, 2024, all table water producers, including sachet and PET bottle manufacturers, are instructed to halt production to facilitate discussions aimed at finding viable solutions to the mounting challenges.

The statement highlighted the severe economic strain on the industry, citing a significant surge in the prices of raw materials such as nylon, packaging bags, purifying materials, fuel, electricity, and transportation, which have collectively soared by over 500 percent. Additionally, increased fees levied by state and local government agencies further exacerbate the situation.

According to field reports from various zones, many producers have already ceased operations due to the unsustainable cost structure, prompting the association to take decisive action.

In a bid to salvage their businesses from collapse, ATWAP Enugu State Chapter has resolved to sell a bag of sachet water (containing 20 sachets) at N300, effective February 16, 2024. Any violator of this resolution will face a fine of N200,000 per truck or driver caught by the ATWAP Task Force tasked with enforcing compliance.

Members are urged to utilize the shutdown period to conduct maintenance on their equipment and ensure cleanliness within their facilities, as inspections will be conducted to ensure adherence to standard operating procedures.

While acknowledging the inconvenience caused, ATWAP appeals for the cooperation of dealers and consumers, emphasizing the necessity of these measures to sustain the industry amidst unprecedented challenges.

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