Unilever Ghana PLC has addressed reports claiming its tea production line (Lipton) is relocating to Nigeria due to unfavorable business conditions in Ghana.
The company clarified that the halt in tea production is part of a global strategy to transfer operations to its Nigerian subsidiary, Ekaterra, and not a result of macro-economic issues in Ghana.
“Certain decisions are taken at the global level, which sometimes impact us. Sometime around 2019, we had to let go of our oils and spread business to another company upfield who are just next door to us. And this is all part of a global strategy to focus on certain core categories within the organization.
“The tea story is very similar, this is not a Unilever Ghana decision, let me be very clear. This is a global strategy decision to offload its tea operations to allow it to operate in a way that is more efficient and not as part of the current set-up of the way we operate as Unilever globally.
In recent times, several multinational companies have exited Ghana due to economic and profitability concerns. When this issue arose, Unilever Ghana, a long-standing fast-moving consumer goods company, was also mentioned following the suspension of its Lipton tea production line.
However, Managing Director, Chris Wulff-Caesar clarified that this decision is part of a broader global strategy to optimize operations and leverage the strengths of its subsidiaries.
“The tea operations leaving Ghana have nothing to do with “Dumsor” or activities in Ghana. It is a global strategy decision. The new company Eketerra has taken over that business and not Unilever Nigeria. The decision started in 2021, it took time for it to take effect.”
“Ghana remains a place for investment, there’s still investment going on in our factory. Unilever still sees Ghana as a good investment destination. Unilever is here to stay in Ghana”, the MD added.