World's leading condom manufacturer to sharply raise prices due to war around Iran - Media
Kyiv • UNN
The largest manufacturer, Karex, is increasing product costs due to logistical problems and more expensive raw materials. Delivery times for goods to the US and Europe have doubled.
The world's largest condom manufacturer, Malaysian company Karex, plans to raise prices by 20-30% and does not rule out further increases if logistics problems due to the war around Iran drag on. This was stated to Reuters by the company's CEO, Goh Miah Kiat, as reported by UNN.
Details
According to him, the conflict in the Middle East has already disrupted supply chains and caused a sharp increase in the cost of raw materials and transportation. This refers to synthetic rubber, nitrile, packaging materials, aluminum foil, and silicone oil, which are used in condom production.
The situation is very unstable, prices are high. We have no choice but to pass these costs on to customers.
Karex produces over 5 billion condoms annually and supplies products to world-renowned brands, including Durex and Trojan, as well as to public health systems and UN humanitarian programs.
The company also reported a sharp increase in demand. According to the CEO, it has increased by approximately 30% this year. One of the reasons was supply delays, due to which customers have smaller product inventories than usual.
The delivery time for goods to Europe and the US has almost doubled – from one month to two. Because of this, a significant amount of products are in transit but have not yet reached consumers.
A number of developing countries, where access to contraception largely depends on international aid programs, may particularly acutely feel the shortage.