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L’Oréal To Expand Kentucky Plant, New Saudi Subsidiary

January 23, 2013

Kentucky Governor Steve Beshear was onsite at L’Oréal’s Florence manufacturing plant for the groundbreaking ceremony for the expansion of the 560,000 square foot facility. The proposed plant expansion will include renovations to the existing plant, new construction and the purchase of new equipment, according to L’Oréal.

Eric Wolf, L’Oreal USA Florence plant manager and Kentucky Governor Steve Beshear (right).
Eric Wolf, L’Oreal USA Florence plant manager and Kentucky Governor Steve Beshear (right). Located at 7080 New Buffington Rd., the plant currently employs more than 200 full-time workers who produce 165 million units of Garnier Fructis, L’Oréal Paris and Soft Sheen-Carson shampoo, conditioner and styling products each year.

The company estimates that the 110,000-sq.-ft. plant expansion will create more than 200 new jobs during the next three years.

“L’Oréal’s business is growing globally and the expansion will enable us to meet increased consumer demand for the popular hair care brands we are producing in Kentucky,” said Eric Wolff, plant manager. “The Florence plant is a center of manufacturing excellence for the L’Oréal Group and the decision to expand US production here will result in significant economic benefit for Kentuckians.”

Last year, the Florence plant announced an innovative “Wall to Wall” component supply program which located its shampoo component supplier, Alpla, in the same factory where the Garnier Fructis shampoos and conditioners are produced. The initiative reduced environmental impacts including freight, CO2 emissions, waste and costs.

The plant has also implemented a vessel cleaning optimization program, called OptiCIP, which has reduced the amount of water used for vessel washing per unit of finished product by 43%. This program alone equates to an overall 18% reduction in total water consumption since 2005.
In other news, L’Oréal has created L’Oréal KSA, a new subsidiary based on a joint venture with Al Naghi Group. L’Oréal brands have been present in the Kingdom of Saudi Arabia since 1982. In 2000, L’Oréal appointed Al Naghi Group as its sole distributor for its Consumer Products, Active Cosmetics and Professional Products Divisions.

The new subsidiary will manage a portfolio of well-known brands including L’Oréal Professional, Kerastase, L’Oréal Paris, Garnier, Maybelline New York and Vichy.

L’Oréal KSA’s scope will include implementing best practices on developing the local market, increasing consumer proximity to better understand the Saudi woman’s needs, ensuring greater reach for the Group’s products to more Saudi consumers and a commitment to training, education and nurturing local talent within the L’Oréal KSA team.

“This union of two strong organizations with shared values, both contributing individual expertise to the partnership, makes us confident that we will significantly improve our positions in the Saudi market,” said Geoff Skingsley, managing director, Africa & Middle East Zone L’Oréal.

“Our partnership with L’Oréal for more than 10 years has enabled the access of this great company’s brands to millions of Saudi consumers across the Kingdom. We are very proud to be associated with such an ethical, consumer- and community-enabling Group and look forward to build the business further,” said Sheikh Mohamed Yusuf, chairman, Naghi Group.
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