But Nigeria is not an easy market to operate in, let alone to manufacture products. The Nigerian market offers a huge opportunity as Africa’s biggest market by population and Africa’s biggest economy. ![]() In that time the brand has amassed a more than 44% marketshare, according to A.C. ![]() Molfix, Hayat Kimya’s flagship diaper brand, was launched in Nigeria three years ago. Molfix Gains More Than 44% Marketshare in Nigeria After Three Years This is Ontex’s first significant investment in Sub-Saharan Africa and it will go a long way to allow Ontex to service the East Africa market as well as meet this five year goal. Ontex’s CEO, Charles Bouaziz, at the official opening in Addis Ababa, said, “Our objective is more or less to double every five years, which represents a 15% growth.” He went on to thank Ontex’s 11,000 employees around the globe. They anticipate by June 2018 they will be putting in additional new machines, over and above the current equipment that runs at 700 diapers per minute. I am made to believe they are very happy with their progress. Last year, Ontex Global opened a state-of-the-art factory in Ethiopia, Africa’s second largest market and its fastest growing. Furthermore the retail environments in these countries are also quite highly developed, which makes distribution easier and translates to better and easier access to that high disposable income consumer. Diaper market penetration is also higher in these markets, for the same reason. Other markets like Mauritius, Namibia and Botswana, while their population sizes are small, offer consumers that have much higher disposable incomes than the regional average. So any manufacturer based in South Africa will have full advantage to export their goods to the other 14 SADC members, among them key markets of Angola, Democratic Republic of Congo, Mozambique and Tanzania, without paying duties, as long as the product is manufactured in a SADC member country and carries a SADC certificate. South Africa is the biggest market in the Southern African Development Community (SADC) economic block. The company currently operates three coating / laminating lines, which includes the ability to make cloth like backing sheet, cast film, breathable film and textile backing sheet. In addition, Spunchem plans to increase its coating/laminating and printing capacity. A second 10,000 TPA SMMS plant is scheduled to be completed by the end of 2018 to meet the market requirements of South Africa and surrounding regions. This was Spunchem’s fourth spunbond line. Their website says, “Spunchem worked hand in hand with a top-three diaper manufacturer, which included extensive trials of product manufactured using the technology that Spunchem will employ.” In July 2016, the company completed construction on a state-of-the-art SMXS line of 8000 tons per annum nameplate capacity plant, to increase total capacity to over 22,000 TPA nameplate capacity. In 2016, Spunchem International, another nonwovens player who has been in the South African market for the past 20 years, responded to the anticipated growth within the South African hygiene sector by increasing its production capacity in its hygiene focused facility to 32,000 tons per annum by 2018. 2 respectively, in South Africa, Africa’s second biggest economy. ![]() The two biggest diaper manufacturers Procter & Gamble and Kimberly-Clark are No. This South African move is a most logical investment. Production is expected to commence in early 2019 and the factory will have an annual production capacity of approximately 10,000 tons. It is anticipated they plan to invest R1.3 billion. In 2017, Pegas Nonwovens, the largest producer of spunmelt nonwovens in Europe, the Middle East and Africa, finalized the purchase of their land in Cape Town, in preparation to put up a new factory, their second on the continent, but their first in Sub-Saharan Africa. Pegas Plans its First Factory in Sub-Saharan Africa Several recent investments in the Africa region by global players in the hygiene and nonwovens sector are confirmation of this. After many years of low penetration compared to other markets around the globe, Africa’s diaper market has finally reached a tipping point.
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