The world’s largest cosmetics and beauty company, L’Oréal, has invested €100m to open its largest plant, a 66000sqm building, in West Java, Indonesia.
As the company's production hub for Southeast Asia, the plant will manufacture hair and skin care products for its brands, L’Oréal Paris and Garnier. L'Oreal expects that in 2013, the plant will produce 200m units and has an installed capacity of 300m units with the potential to reach up to 500m units per year.
The new plant features state-of-the-art facilities including high-speed production lines, processing tanks with automatic recipes management, a lighting system based on movement detection and an advanced technology water treatment plant which is currently under development. The company intends to expand the plant according to market needs, and says it will use local materials and suppliers as much as possible.
Jean-Philippe Blanpain, executive vice-president of operations for L’Oréal’s ASEAN production hub says, “As we have been successfully operating a factory in Indonesia since 1986, the country is therefore the clear choice for L’Oréal’s ASEAN production hub. Building our largest factory in Indonesia once again demonstrates our dedication to providing Indonesians and the markets in the ASEAN region products with superior quality and value.”
The company has the ambition to reach over one billion new customers in the next ten years, with the new factory catering for the increased market demand in Indonesia and ASEAN. 30 per cent of production from the new facility will cater to the domestic market while the remaining 70 per cent will be distributed to all other countries in Southeast Asia.
Jochen Zaumseil, executive vice-president for the Asia Pacific Zone, L’Oréal says, “With the highest growth of the Group in Asia Pacific, Indonesia is a key contributor to the L’Oréal objective of reaching one billion new consumers. The Jababeka plant reflects our confidence in the continuous expansion of the Indonesian market and our strong commitment to the country.”