By Ohuakanwa Chibuzo
In response to soaring production expenses, the Association of Table Water Producers (ATWAP) has announced plans to temporarily cease operations across all water manufacturing facilities in Enugu State. The decision, communicated through a statement issued by Mr. Tony Edike, Chairman of ATWAP Enugu State Chapter, and Sir Clems Nwamadi, State Secretary, comes in the wake of an emergency meeting convened by the association’s members on February 8, 2024, in Enugu.
Effective from February 12 to February 15, 2024, all Table Water Producers in Enugu State, encompassing both sachet and PET bottle manufacturers, are instructed to suspend production activities. The hiatus aims to facilitate discussions and explore viable solutions to the myriad challenges plaguing the association’s members.
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Citing the debilitating economic climate, the statement highlights a drastic escalation in production-related expenses, including a staggering 500% surge in the prices of essential raw materials such as nylon, packaging bags, purifying agents, borehole water procurement, diesel, electricity tariffs, transportation, maintenance, and labor costs. Moreover, ATWAP notes an unwelcome uptick in regulatory fees levied by state and local government agencies within their operational jurisdictions.
Field reports collated from various zones of the association underscore the pervasive impact of exorbitant production costs, with numerous producers forced to shutter their factories to mitigate financial losses. Consequently, ATWAP Enugu State Chapter has resolved to implement a price adjustment effective February 16, 2024, whereby a bag of sachet water (containing 20 sachets) will be retailed at N300. This measure is intended to safeguard producers’ viability and prevent the collapse of their enterprises.
The statement emphasizes the strict enforcement of the pricing resolution, with violators facing penalties of N200,000 per truck/driver apprehended by the ATWAP Task Force, mandated to oversee compliance. Members are urged to utilize the shutdown period for equipment maintenance and environmental sanitation, as the Task Force prepares to conduct factory inspections to ensure adherence to standard operating procedures.
ATWAP extends an appeal for cooperation from dealers and consumers, soliciting understanding during this challenging period to sustain the continuity of business operations. The association underscores its commitment to navigating the prevailing economic uncertainties while upholding industry standards and consumer satisfaction.
