Karex Berhad, the world’s top condom producer, says it plans to raise its prices by 20 percent to 30 percent due to supply chain disruptions as a result of the Iran war.
The company, based in Malaysia, produces over five billion condoms annually and is a supplier to leading brands like Durex and Trojan.
The company also supplies to state health systems such as Britain’s NHS and global aid programmes run by the United Nations.
Goh Miah, the company’s CEO, told Reuters that since the conflict began in late February, the cost for everything from synthetic rubber and nitrile used in manufacturing condoms to packaging materials and lubricants such as aluminium foils and silicone oil, have increased.
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Kiat said Karex is also seeing a surge in condom demand due to rising freight costs and shipping delays which have left many of its customers with lower stockpiles than usual.
“The situation is definitely very fragile, prices are expensive. We have no choice but to transfer the costs right now to the customers,” he said.
The CEO said Karex’s shipments to destinations such as Europe and the United states are now almost two months to arrive, compared to a month previously.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” he said.
He added that many developing countries do not have enough stock because it takes time for the products to reach them.
He said Karex has enough supplies for the next few months and is looking to boost output to meet growing demand.
The company joins a growing list of companies, including medical glove makers, facing supply chain bottlenecks as the Iran war disrupts procurement of raw materials.
