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Enugu Sachet Water Producers Temporarily Shut Down Operations Due To Rising Costs

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Enugu Sachet Water Producers Temporarily Shut Down Operations Due To Rising Costs

The Association of Table Water Producers (ATWAP) in Enugu State has temporarily shut down water-producing factories, citing the rising cost of production as the primary reason, News About Nigeria reports.

This decision, reached during an emergency meeting on February 8, 2024, will see all table water producers, including those manufacturing sachets and pet bottles, suspend production from February 12 to February 15, 2024.

The move is a response to the challenges faced by ATWAP members, particularly the increase in the prices of raw materials and other production factors.

The association said that there has been a 500% surge in the costs of essential elements such as nylon, packaging bags, purifying materials, borehole water procurement, diesel, high electricity tariffs, haulage/transportation, maintenance, and staff expenses.

“The current harsh economic situation in the country, especially as it affects materials and other logistics for the production of sachet water in the state, was critically reviewed.  

“After hours of deliberations on the overwhelming challenges being encountered by ATWAP members, especially the over 500 percent increase in the prices of raw materials and other factors of production, we have to come to this decision,” the statement read.

In response to the crisis, the ATWAP Enugu State Chapter has announced a pricing adjustment effective from February 16, 2024.

A bag of sachet water (20 sachets) will now be sold at N300, which reflects the increased production costs.

The resolution, unanimously endorsed by all members, comes with strict enforcement measures, including a potential fine of N200,000 per truck/driver caught violating the pricing resolution, as enforced by the ATWAP Task Force.

During the temporary shutdown, ATWAP members are advised to mobilise their staff for equipment cleanup, with the Task Force conducting inspections to ensure compliance with standard operating procedures.

The association appeals for the understanding and cooperation of dealers and consumers during this challenging period, adding that there is a need for solidarity to enable producers to remain in business.