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Firm recommits to local sourcing, backward integration

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Manufacturing firm, Henkel Nigeria, has reaffirmed its commitment to creating sustainable value for its, consumers, employees, as well as for the wider society and communities in which it operates.

To achieve this, the firm said it is intensifying local sourcing efforts and the provision of multilevel jobs in the country, which aligns with the government’s backward integration policy.

Since it entered the country in 2016, the company has actively worked to reduce Nigeria’s import dependency through local sourcing. Currently, Henkel has over 60 per cent of its raw and packaging materials sourced locally, as well as 80 per cent of services also locally sourced.

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The Managing Director / Chief Executive Officer, Henkel Nigeria, Rajat Kapur, said through its distributorship network, the company provides thousands of jobs across the country with an estimated contribution of around 5,000 direct and indirect jobs in Nigeria, adding that the company generates direct employment for more than 1,500 people in the Ibadan plant alone.

Kapur said through the firm’s investments in local production, technology transfer and the high standards in which they adhere to, Henkel actively contributes to upgrading the local industrial and standards base – thereby supporting the overall competitiveness of Nigeria’s economy.

He stated that the detergent manufacturer has developed Nigeria-centric brands and products that are backed by its global German product quality and reliability standards. It also has a growing industrial ecosystem comprising local toll manufacturers and suppliers, who support the daily operations such as raw material sourcing, packaging, transportation, trade marketing, and others, thus, contributing to the economy locally while satisfying the domestic demand for products.

“We seek to be a strong contributor to the Nigerian economy while supporting its driving forces and empowering talents with the ultimate ambition to produce for Nigerians by Nigerians. Through training opportunities such as ITI schemes, as well as Henkel’s internship programme, the company aims to foster the next generation of youths in the industry and encourage them to achieve their career aspirations,” Kapur said.

The company has also been at the forefront of supporting the government and host communities.

Through Henkel’s Global Solidarity Programme, “we supported local communities affected by the global COVID-19 pandemic by donating to front-liners in Lagos state and Ibadan, donating to Oyo State government to help state-run isolation and treatment centres and donating to the Oyo State government to run a COVID-19 ‘preventative measures’ awareness campaign’’, he added.

Another way it is contributing to a sustainable future for the local economy is by driving progress towards sustainable palm oil and palm kernel oil – and making a positive impact on both the environment and the people affected.

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