US EditionWorld's biggest maker of condoms Karex set to raise prices due to Iran war
Goh Miah Kiat said higher freight and raw-material costs are forcing Karex to pass on expenses as global condom demand rises 30%.
- Malaysia's Karex Bhd, the world's top condom producer, plans to raise prices by 20% to 30% due to Iran war-related supply chain disruptions, CEO Goh Miah Kiat said on Tuesday.
- The Iran war strains energy and petrochemical flows from the Middle East, disrupting raw material procurement. Since the conflict began in late February, Karex has faced surging costs for synthetic rubber, nitrile, and packaging materials.
- Global demand for condoms has risen about 30% this year, while shipments to Europe and the United States now take close to two months to arrive compared to one month previously.
- "We're seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required," Goh said. Developing countries face critical shortages due to transit delays.
- Karex produces over 5 billion condoms annually for major clients including Durex, Trojan, and Britain's NHS. Global stockpiles previously dropped significantly due to spending cuts by the United States Agency for International Development last year.
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Malaysian giant Karex, who supplies brands like Durex, announced that the conflict in the Middle East will increase the prices of its products.
The condom market is experiencing a surge in oil prices. The supplier of the famous Durex brand announces an increase of 20 to 30% in the cost of their manufacture and major logistical problems.
The world's largest condom manufacturer, Malaysian company Karex, plans to raise prices by up to 30 percent. The reason is rising costs related to the conflict in the Middle East, and the closure of the Strait of Hormuz, through which almost a fifth of the world's oil and gas supplies flow.
US-Iran war: Condom giant Karex, maker of Durex, to increase prices by 30%; How Strait of Hormuz conflict has affected production?
The CEO of world's largest condom manufacturer, Karex, has announced that the company will likely increase the prices by up to 30% or more as the supply of raw materials has been disrupted due to the ongoing conflict over the Strait of Hormuz.
The escalation of the conflict and the rise in the prices of raw materials are also beginning to move to unexpected sectors of daily consumption.
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