Source : Perth Now news
The world’s largest condom manufacturer may raise prices by 30 per cent, citing disruption caused by the ongoing Iran war.
Karex, which produces about a fifth of the world’s condoms, said the closure of the Strait of Hormuz has significantly increased manufacturing and supply-chain costs.
The company manufactures more than five billion condoms annually across facilities in Malaysia and Thailand, supplying major contraceptive brands, including Durex and Trojan, as well as the UK’s National Health Service (NHS).
However, the war has triggered sharp increases in the cost of key raw materials, including latex, nitrile, aluminium foil and silicone oil used in packaging.
Chief executive Goh Miah Kiat told the Financial Times: “The situation we are now facing with war in the Middle East is quite sudden and there is not much time for us to prepare.
“Some of our raw materials are increasing in pricing rather quickly and we have no choice but to transfer some of the cost to our clients.”
Prices for petroleum-based latex have risen by around 30 per cent this year, while nitrile butadiene – a synthetic rubber – has doubled.
Shipping delays and rising energy costs have further compounded the strain.
Goh added: “We think the situation will probably linger for quite a bit.”
He also warned that Karex’s price increases would likely extend across its full product range, including lubricants and medical supplies.
