Syringe Manufacturing Firm Gives Reasons For Closure, Speaks on Future Operations in Nigeria
- Syringe manufacturing company JSM has disclosed why it is shutting down operations in Nigeria
- The company said the decision was due to a myriad of issues, including Forex, import duties, and interest rates
- JSM said it wants to source funds, re-strategize, and be back in business as soon as it could
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Jubilee Syringe Manufacturing (JSM) said it has temporarily shut down operations in Nigeria, blaming the decision on Forex challenges.
The company's Managing Director disclosed this on Thursday, January 4, 2024, stating that the problem is due to Forex, import duties, and interest rates.
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The decision is just temporary
TheCable reports that the JSM boss said the company is only shutting down temporarily to source funds and be back in business.
JSM is located in Awa, Onna, a local government area of Akwa Ibom, and Africa's largest syringe manufacturing company.
The company was inaugurated in 2017 by ex-Vice President Yemi Osinbajo and began operation three years later.
In a memo to staff circulating in the local media, JSM said the move was necessary to ensure its long-term sustainability.
It told workers that the closure was regrettable and a challenging decision that needed to be made due to circumstances beyond its control.
In a memo to staff members, JSM explained that it must implement temporary measures to ensure the firm's long-term sustainability.
Memo explains reasons for closure
The memo partly reads:
"After careful consideration and a thorough evaluation of our current business situation, we regret to inform you that we must implement temporary measures to ensure the company's long-term sustainability."
It told workers they are being placed on temporary redundancy effective January 1, 2024.
JSM joins a myriad of firms leaving Nigeria
JSM closure joins the entourage of firms, especially critical companies shutting down in Nigeria, citing the challenging business environment.
In the two months leading to the end of 2023, two firms, GSK and Procter and Gamble, confirmed their exit from Nigeria.
Others include Sanofi Aventis Nigeria Limited, a French firm that adopted a third-party product distribution model.
After GSK's exit, Nigerians fear another major company set to leave Nigeria
Legit.ng reported that Jubilee Syringe Manufacturing (JSM) Company, in Awa, Onna local government area of Akwa Ibom state, trended recently over claims that it halted operations in Nigeria.
The company, however, stated that its decision to halt operations was only temporary. It, however, did not mention when operations would resume.
The company, in a statement, said the decision was influenced by unforeseen circumstances affecting its business operations.
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Source: Legit.ng
