Nice House of Plastics (NHOP) has embarked on a restructuring program amid the Covid19 crunch, that will see several employees forced into retirement while others will be sent on leave without pay.
In a statement issued by the company on Wednesday, the company said it was continuing to experience declining revenues mainly occasioned by economic difficulties in the most of the markets and regions the company operates in.
The competitive environment, the company announced, has constrained its ability to continue increasing its prices to match the increasing cost.
“Despite various initiatives that we have put in place, our cost base continues to be extremely high. This, coupled with other direct operating costs has put pressure on our contribution margin reducing our overall ability to operate profitably and stay liquid,” read the statement in part.
The company also announced that it is continuing to face the major challenge of balancing the cost of doing business against ability to meet customers’ requirements.
“Owing the significant headcount increase in 2019/2020 annual salary increments and adjustments arising out of job evaluation and grade movements, our employee costs have risen to unsustainable levels and therefore management has taken a view these need to be reviewed with the objective of long term sustainability of the company.”
“As such, the company will immediately embark on a restructuring program that will result in retirement of all those who were scheduled to retire a total of 09 members of staff, staff redundancies affecting 47 members of staff and leave without pay for the remaining staff for an initial 3 months,” read the statement.