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Evereadys Kenya Plant to be Shut Down

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Published on : Sep 30, 2014

The largest dry-cell battery manufacturer in the region of East Africa, Eveready East Africa Ltd. intends on shutting down its one and only factory in Kenya on the 1st of October 2014. A real estate business will be started in its place.

According to the Managing Director of Eveready East Africa Ltd. the plan of shutting down the plant was initiated by the board members of this company which is almost fifty years old. The manufacturing plant in question, is located in Nakuru which is a town situated in the west of Nairobi, the capital of Kenya.

This plant was functioning only at one fourth the total capacity, which as a result had an adverse impact on the profitability. The company will be compensating the 98 laborers affected by this shut-down plan, with a severance package worth US$ 1.24 million. 

According to the officials of Eveready East Africa Ltd. the batteries that were being manufactured by the company were facing extreme competition from inexpensive illegally imported batteries from the east. 
The batteries will from now on be imported from a sister manufacturer of Eveready’s called Energizer Egypt. 

Eveready East Africa Ltd. has plans of establishing its real-estate subsidiary called Flamingo Properties Kenya Ltd. This subsidiary will be developed on the same 20 acres land where the Nakuru plant is currently situated. 

Apart from dry-cell batteries, Eveready East Africa Ltd. also caters for household, energy, and personal care products. The company also has plans of expanding its business by setting up distribution centers in Kenya and Uganda. 

In the forthcoming five years, it also intends on expanding its business in Burundi and Rwanda.

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