Beer manufacturer Nigerian Breweries has announced the closure of two out of its nine manufacturing plants in Nigeria due to the country’s harsh economic conditions.
The decision, communicated in a note to the Nigerian Exchange Limited on Thursday, comes as the company grapples with operational concerns exacerbated by a record foreign exchange loss of N153.3 billion last year.
The move marks the highest foreign exchange loss in the company’s 77-year history since it began operations in Nigeria.
Heineken Brouwerijen B V, the parent company, faced great challenges in maintaining profitability amidst economic headwinds.
Recognizing the impact on employees in the affected locations, Nigerian Breweries has committed to providing severance packages to those affected.
Hans Essaadi, the managing director, lamented over the suspension of brewery operations but stressed the company’s dedication to minimizing the impact on its workforce.
The decision not only addresses operational concerns but also positions the company for a 15 per cent capacity expansion over the past decade while streamlining production costs.
