The Malaysian-based firm, which produces more than five billion condoms annually and supplies major brands as well as global public health programmes, said it has been left with little choice but to pass rising costs on to customers amid what it described as a “fragile” operating environment.
Chief executive Goh Miah Kiat said the conflict, which began in late February, has disrupted key supply chains, leading to higher prices for essential raw materials such as synthetic rubber, nitrile, aluminium foil and silicone oil used in condom production.
The impact has been compounded by rising freight costs and prolonged shipping delays, which have significantly slowed global deliveries. Shipments to major markets in Europe and the United States now take nearly two months to arrive, compared to about one month previously, further tightening supply.
At the same time, Karex is experiencing a surge in demand, with orders increasing by about 30 percent as customers seek to replenish depleted inventories caused by logistical bottlenecks and reduced stockpiles.
“We have no choice but to transfer the costs right now to customers,” Goh said, noting that the combination of higher input costs and delivery delays has created significant pressure across the company’s operations.
Karex supplies condoms to leading commercial brands such as Durex and Trojan, as well as public health systems including Britain’s National Health Service and international aid programmes run by the United Nations.
The company warned that supply shortages are already being felt in some developing countries, where longer delivery times have slowed distribution and reduced access to essential health products.
Despite the challenges, Karex said it has sufficient raw material supplies to sustain production in the short term and is working to increase output to meet growing global demand.
The firm is among a growing number of manufacturers, including medical glove producers, grappling with supply chain disruptions as the Iran war continues to strain global energy and petrochemical flows, with wider implications for manufacturing costs and product availability worldwide.
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