Cussons to switch soap jobs to Thailand
Wednesday 09 February 2005
The factory, which has been making soap since 1955, will shut in 2007 and production will be switched to Thailand. Soap bars produced in Nottingham now only account for 17 per cent of the group's UK sales, down from more than half of sales in 1995.
Graham Calder, finance director of PZ Cussons, said, "Bars of soap are becoming less popular in the UK and it is more cost effective for us to move to Thailand, where we are investing in a new state-of-the-art factory. Demand for soap bars in Asia is rising."
The Far East now accounts for two-thirds of the world market for soap bars, and PZ Cussons already has produc-tion centres in Thailand and Indonesia.
The news of the closure came as PZ Cussons, which began trading in Sierra Leone in 1879, announced it was withdrawing from Russia and China. The group has been hit by the weakening of the rouble, which has made the investment needed to promote its brands expensive, and a new distribution network has failed to improve sales.
It has also failed to succeed in China, blaming competitive pressures. "We have been in China for about 10 years but have been losing money," Mr Calder said. "It is very competitive and we are plagued by counterfeit goods there."
A pounds 3m loss in Russia and losses in China caused the company to report a 4 per cent drop in pre-tax profits for the six months to the end of November. It has also been hit by the weak US dollar, as more than half of its business is in currencies that are linked to the dollar.
"Rising oil costs have also affected us," Mr Calder said. "That increases the costs of our packaging as well as some of the raw materials used in our products."
The company also owns the Original Source shower gel brand and Charles Worthington hair products.
- 1 PlayStation and Xbox hacked by Lizard Squad
- 3 The Grace Dent Christmas Questionnaire
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 Vagina canoe artist defends herself over ‘obscenity’ charges
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...