ABUJA- Beer manufacturer Nigerian Breweries will shut down two of its nine manufacturing plants in Nigeria due to the harsh economic situation in the country, the company said in a note to the Nigerian Exchange Limited on Thursday.
Policy makers at the company deemed the decision necessary due to operational concerns which was massively impacted by record foreign exchange loss up to the tune of N153.3 billion last year.
It’s the Nigerian subsidiary of Heineken Brouwerijen B.V’s highest foreign exchange loss in the company’s history since it began operations in Nigeria 77 years ago.
The company said it recognised how the closure of the two plants would affect workers in the affected locations. But he said the company was committed to reduce the effect of the situation by providing severance packages to the affected employees.
“We recognise and regret the impact that the suspension of brewery operations in the two affected locations may have on our employees,” said Hans Essaadi, the managing director of the company.
He added, “We are committed to limiting the impact on people as far as possible and providing strong support and severance packages to all affected.”
The decision will help the company to retain 15 per cent capacity expansion over the past decade as well as reduce costs of production, Bloomberg Africa reported.
