By Samuel Gonzalez
The impact of tensions in the Middle East has been felt in various sectors beyond energy, even in industries that we would never have imagined would be affected, such as the sexual health products industry. Amid logistical disruptions and rising prices of raw materials, A major condom manufacturer warned that prices could rise in the coming months due to the war in Iran and its effects on the international supply chain.
The Karex companybased in Malaysia and considered one of the largest condom producers in the world, noted that faces significant pressure from synthetic rubber shortagean essential fabric for its manufacture. According to its chief executive, Goh Miah Kiat, the costs of some inputs have doubled, while international transport has also become more expensive and slower.
“The situation is definitely very fragile. Prices are high. We have no choice but to pass the cost on to customers“, Goh Miah Kiat, CEO of Karex, told Reuters.
The company warned that, if current conditions continue, could apply increases of between 20% and 30% in its prices.
The conflict in Iran has caused severe pressure on strategic shipping routes, especially in the Strait of Hormuz, leading to delays and complications in the global transportation of goods. This situation not only affects oil, but also products derived from the petrochemical industry, such as plastics and synthetic rubber.key inputs for multiple consumer goods.
In the case of Karex, shipments to markets such as Europe and the United States, which normally take around a month, are now arriving in almost two months due to logistical disruptions. Added to this is an increase in the demand for condomswhich the company itself estimates at close to 30% so far this year, which has generated greater pressure on inventories.
Founded in 1988 in Johor, Malaysia, the company makes around 5 billion condoms a year and exports to more than 130 countries. Besides, It is a supplier of international brands such as Trojan and Durexwhich makes it a relevant player in the global market for this type of products.
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