Unbearable Cost: Table, sachet water producers shut down production in Enugu
The Association of Table Water Producers
(ATWAP) says it will shut down and suspend production in all water
producing factories in Enugu State due to unbearable high cost of
production.
This is contained in a statement issued by the Chairman of ATWAP, Enugu State Chapter, Tony Edike and its State Secretary, Sir Clems
Nwamadi, on Sunday in Enugu.
The statement was issued after members of ATWAP Enugu State
Chapter held an emergency meeting in Enugu on Feb.8, 2024, on challenges
confronting all members of the association.
It said from Monday, Feb. 12 to Thursday, Feb.15, 2024
all Table Water Producers in Enugu State including Sachets and Pet
Bottles are required to down tools and suspend all production.
According to the statement, "this is to enable us to seek a workable solution to the many challenges being faced by our members".
“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 were critically reviewed.
“After hours of deliberations on the overwhelming challenges
being encountered by ATWAP members, especially the over 500 per cent
increase in the prices of raw materials and other factors of production,
we have to come to this decision.
“The 500 per cent increase in the prices of raw materials, which
included: nylon, parking bags, purifying materials, procurement of water
from boreholes located outside the city, diesel, high electricity
tariff, haulage/transportation and other maintenance and staff costs.
“Also, the upward review of various fees charged by both agencies
of the state and local government areas within our areas of
operations,” it said.
It said that ATWAP after receiving field reports from various zones of the association indicated that many producers had shut down their factories due to high cost of materials and other production challenges that had increased mortality rate among the members.
The statement said that ATWAP Enugu State Chapter hereby resolves as
follows: “with effect from Feb. 16, 2024, a Bag of Sachet Water (20
sachets) will be sold at N300 to enable the producers sustain their
operations and rescue their businesses/investments from total collapse.
“Any defaulter/violator of this resolution which was unanimously
endorsed by all members of ATWAP Enugu State Chapter will pay a fine of
N200,000 per any truck/driver caught by the ATWAP Task Force already
mandated to enforce the exercise.
“Members are advised to mobilize their staff during the period of
the factory shutdown to clean up their equipment and keep their
environment clean as the Task Force will soon embark on Factory
Inspection to ensure that members comply with standard operating
procedures.”
The statement, however, appealed for the cooperation of dealers
and consumers, as “we are hereby soliciting their understanding during
this period to enable us (the producers) to remain in business.
This is contained in a statement issued by the Chairman of ATWAP, Enugu State Chapter, Tony Edike and its State Secretary, Sir Clems Nwamadi, on Sunday in Enugu.
The statement was issued after members of ATWAP Enugu State Chapter held an emergency meeting in Enugu on Feb.8, 2024, on challenges confronting all members of the association.
It said from Monday, Feb. 12 to Thursday, Feb.15, 2024 all Table Water Producers in Enugu State including Sachets and Pet Bottles are required to down tools and suspend all production.
According to the statement, "this is to enable us to seek a workable solution to the many challenges being faced by our members".
“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 were critically reviewed.
“After hours of deliberations on the overwhelming challenges being encountered by ATWAP members, especially the over 500 per cent increase in the prices of raw materials and other factors of production, we have to come to this decision.
“The 500 per cent increase in the prices of raw materials, which included: nylon, parking bags, purifying materials, procurement of water from boreholes located outside the city, diesel, high electricity tariff, haulage/transportation and other maintenance and staff costs.
“Also, the upward review of various fees charged by both agencies of the state and local government areas within our areas of operations,” it said.
It said that ATWAP after receiving field reports from various zones of the association indicated that many producers had shut down their factories due to high cost of materials and other production challenges that had increased mortality rate among the members.
The statement said that ATWAP Enugu State Chapter hereby resolves as follows: “with effect from Feb. 16, 2024, a Bag of Sachet Water (20 sachets) will be sold at N300 to enable the producers sustain their operations and rescue their businesses/investments from total collapse.
“Any defaulter/violator of this resolution which was unanimously endorsed by all members of ATWAP Enugu State Chapter will pay a fine of N200,000 per any truck/driver caught by the ATWAP Task Force already mandated to enforce the exercise.
“Members are advised to mobilize their staff during the period of the factory shutdown to clean up their equipment and keep their environment clean as the Task Force will soon embark on Factory Inspection to ensure that members comply with standard operating procedures.”
The statement, however, appealed for the cooperation of dealers and consumers, as “we are hereby soliciting their understanding during this period to enable us (the producers) to remain in business.
