Karex Industries

History

2020: Deficit of condoms

At the end of March, 2020 the world's largest producer of the Karex Industries condoms was announced deficit of these products which is connected with spread of a coronavirus of COVID-19.

The shortage of contraceptives is connected with a stop work of Karex factory in Malaysia because of a koronavirusny pandemic. On March 27, 2020 the enterprises were partially recovered - the government of the country did not permit to work to the plants at full capacity. Karex noted that the most part of condoms is produced in China and India which received significant damage from COVID-2019.

The world's largest producer of condoms announced deficit

Because of production problems Karex faced 50 percent falling of supply of condoms therefore by the end of March, 2020 the company had product inventories at most for two months. However these goods can be sold quickly out because of an intense social situation.

Because of jumps of economy and fear of a disease people do not want to bring children, it is  standard reaction to financial crisis situations. In Russia in March, 2020 sales of means for safe sex increased more than by 30% in comparison with a similar indicator of last year. Also in the country demand for intimate accessories grew.

Condoms can also rise in price considerably, the CEO of Karex Gokh Miakh Kiat told Bloomberg

We still pay all our employees full-fledged salaries, however they  come [to work] only a half of time so in general costs will grow  — he explained.

Karex delivers condoms including for the Durex brand, its enterprises produce more than 5 billion condoms a year and exports them to more than 140 countries, specifies Bloomberg. Because of suspension of air traffic and closure of borders, failure of deliveries became "unprecedented", speak in Karex.^[1]

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