Karex Bhd, the world's largest condom manufacturer, has announced plans to increase prices by 20 to 30 per cent due to supply chain disruptions caused by the Iran war. Chief executive Goh Miah Kiat warned that further increases may be necessary if the conflict continues to strain raw material supplies and shipping routes.
The Malaysian company, which produces more than 5 billion condoms annually for brands including Durex and Trojan, as well as the UK's NHS and United Nations aid programmes, is experiencing rising costs for synthetic rubber, nitrile, packaging materials and lubricants. Goh said the firm has no choice but to pass these costs on to customers.
Demand for condoms has surged by around 30 per cent this year, exacerbated by shipping delays that have extended delivery times to nearly two months for destinations such as Europe and the United States. Many customers are facing lower stockpiles than usual as a result.
Karex joins a growing list of companies, including medical glove makers, grappling with supply bottlenecks as the Iran war disrupts energy and petrochemical flows from the Middle East. The firm has sufficient supplies for the next few months and is increasing output to meet heightened demand, following significant cuts in foreign aid, particularly from the US Agency for International Development last year.
