Industry News

Henkel glue factory closing - Production shifts overseas

Published on 2002-12-04. Author : SpecialChem


Henkel Jamaica, which has been producing adhesives such as Pattex, Tangit, Saxit and Ponal for the local market since the early 1960s, will close its manufacturing operations next month.

The company said it will be shifting focus to distribution of its products within Jamaica and other Caribbean territories as part of a thrust towards achieving cost-effectiveness and efficiencies, brought on by increased competition and other developments in regional and international commerce.

Steve Scott, Henkel Jamaica's administration manager, said 15 production staff would lose their jobs as a result of the reorganisation, but all distribution staff would be retained to continue that side of the business.

In a statement to its customers, published in last Friday's Financial Gleaner, the company said the move was designed to take the company "to an even higher level", and would include sourcing all its products from Henkel's other manufacturing plants in Chile, Mexico, the United States, Brazil and Canada.

It said the new opportunity would enable the company to operate more cost-effectively and viably in a very competitive market, open the gateway to access to a wider range of products, and provide customers with more choices.

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