British firm suspected of seeking plant shutdown in S. Korea

By Lim Chang-won Posted : September 6, 2017, 09:28 Updated : September 6, 2017, 17:02

[Courtesy of Reckitt Benckiser]



British household goods maker Reckitt Benckiser is taking steps to close and sell its production plant in South Korea, bowing to a steady consumers' boycott prompted by deadly humidifier disinfectants that killed more than 100 people, including pregnant women and infants.

According to industry sources, Reckitt Benckiser (RB) Korea sent e-mails regarding the sale of production facilities in Iksan some 173 kilometers (107 miles) south of Seoul to employees at its Seoul headquarters on August 31.

"Probably, the Iksan plant will be closed this month, but it is not going to completely withdraw from South Korea because its business has been done in three ways," an industry source said, adding the company would focus on importing products such as medicines and condoms.

In South Korea, the company has been doing business in three ways: direct production, import, and OEM (Original Equipment Manufacturer). Humidifier disinfectants were produced at an OEM plant.

"We can not confirm it now," an RB official said about the reported shutdown of the Iksan plan. The British company suspended the production of humidifier disinfectants but it has dismissed speculation it may withdraw from South Korea.

The case came to light after pregnant women died of a serious lung ailment in 2011. Government data showed more than 100 people were presumed to have died after using humidifier disinfectants.

In January, a dozen people received jail terms of up to seven years, including those from Reckitt Benckiser Korea. The company was accused of failing to conduct a safety test despite a warning from German researchers about the inhalation toxicity of chemicals.


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