The Association of Table Water Producers (ATWAP) in Enugu State has announced a temporary shutdown and suspension of production across all water bottling factories due to the “unbearable high cost of production.” This decision, outlined in a statement by ATWAP’s Enugu State Chapter Chairman, Mr. Tony Edike, and State Secretary, Sir Clems Nwamadi, came after a crucial “emergency meeting” held on February 8, 2024, to address the pressing issues faced by the association’s members.
According to the statement, “from Monday, Feb. 12 to Thursday, Feb. 15, 2024, all Table Water Producers in Enugu State, including those producing Sachets and Pet Bottles, are required to cease all production activities.” This pause in operations is aimed at finding “a workable solution to the many challenges being faced by our members.”
The dire economic situation, which significantly impacts the cost of materials and logistics necessary for producing sachet water, was “critically reviewed” during the meeting. The association detailed the “overwhelming challenges” encountered, including a staggering “500 per cent increase in the prices of raw materials” and other production factors such as nylon, packing bags, purifying materials, diesel, high electricity tariffs, and costs associated with water procurement, transportation, maintenance, and staff.
Furthermore, the statement highlighted the “upward review of various fees charged by both agencies of the state and local governments,” exacerbating the financial strain on producers.
As a result of these compounding challenges, which have already led to the closure of many factories, ATWAP has resolved to increase the price of a Bag of Sachet Water (20 sachets) to N300 from February 16, 2024, “to enable the producers to sustain their operations and rescue their businesses/investments from total collapse.”
The association warned that “any defaulter/violator of this resolution” would face a N200,000 fine, enforceable by the “ATWAP Task Force already mandated to enforce the exercise.”
During the shutdown period, ATWAP urges its members to “mobilize their staff to clean up their equipment and keep their environment clean” in preparation for an impending “Factory Inspection” by the Task Force to ensure compliance with standard operating procedures.
The statement concluded with an appeal to dealers and consumers for their “cooperation and understanding during this period,” underscoring the necessity of these measures for the producers’ continued operation in the business.