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L’Oréal Expands Asian Production with New Factory

January 22, 2013

L’Oréal’s new plant in Indonesia will serve as the production hub for Southeast Asia.

• INDONESIA: L’Oréal has opened its largest factory in the world, a 66,000 square-meter building
at the Jababeka Industrial Estate in West Java, Indonesia. With a staged investment of €100 million, this new factory will serve as the production hub for the Southeast Asian region, the company said.

“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,” said Jean-Philippe Blanpain, L’Oréal’s EVP of operations. “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. “

In line with the group’s ambition to reach one billion new consumers in the next 10 years, the factory will respond to increased market demand in Indonesia and ASEAN, which represents new frontiers of growth for L’Oréal.

“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, “ said Jochen Zaumseil, L’Oréal’s EVP, Asia Pacific zone.

L’Oréal’s first factory in Indonesia was established in 1986 in a Jakarta suburb. Due to the tremendous growth experienced during the past four years, it was decided to build a new and larger facility, and to transfer all the activities to the Jababeka plant.

Bringing the a total number of L’Oréal factories worldwide to 43, the new Jababeka plant will manufacture hair and skin care products for L’Oréal Paris and Garnier brands. Some 30% of the production will cater to the domestic market while 70% will be distributed to all other countries in southeast Asia, according to the company.

In 2013, the plant will produce 200 million units and has an installed capacity of 300 million units with the potential to reach up to 500 million units a year.

In addition, the Jababeka plant is the first LEED-certified factory in Indonesia and was built following LEED requirements.

L’Oréal employs nearly 800 people in Indonesia with approximately 450 of them working at the new factory in Jababeka. Throughout the transfer process of the factory, L’Oréal has succeeded in retaining 96% of its existing employees from the former factory. In order to facilitate the move to the Jababeka site (40km away), L’Oréal provided employees with transfer and housing incentives. A total of 262 employees and their families have now become homeowners in the surrounding areas of the new factory.

Silab Inaugurates Third Production Unit in France

• FRANCE: Silab has inaugurated its third production unit at its single site in Brive-la-Gaillarde (Corrèze, France).

This new 4,500 square meter site, the company’s fifth, gives Silab the ability to double its production capacity of biologically active molecules. A 15 million euro investment, for the most part self-funded, has gone into this new start-of-the-art industrial unit. It includes three production lines together with high-tech equipment that combines flexibility and automation. Computerized management of the production process (meeting the GMP cosmetics standard) guarantees reliability and traceability at every key stage, according to the company.

This unit has been designed in accordance with an ecologically responsible policy aligned with a high level of safety and consistent with the existing industrial facility, which now covers a total area of 10,000 square meters. The company’s various practices—environmentally-friendly production processes, use of water as a solvent, optimization of its recycling, commissioning of a new on-site wastewater treatment plant and reduction of energy consumption in order to minimize its environmental footprint—are all examples of firm commitments upheld over many years, in support of an overall policy of social and environmental responsibility.

The technological expertise developed by Silab is reflected in the green chemistry and biotechnology processes designed to isolate, purify and concentrate active molecules: enzyme engineering, refined solubilization and purification techniques (including filtration, chromatography) and bio-synthesis techniques. This mastery of the natural resource recovery process enables the company to claim “Made in France” status for Silab active ingredients, which are 100% produced at its single site in Brive-la-Gaillarde. With this new production unit, the company says it is pursuing its sustainable development strategy by continuing to focus on innovation and human skills, coupled with its founding values; i.e., independence, excellence and quality.

Into the Deep: Sustainable Cosmetics Summit Addresses Marine Ingredients

• FRANCE: The cosmetics industry is increasingly turning to the ocean in its search for new ingredients. Although many novel raw materials are emerging, the development is raising many questions about sustainability. Can the cosmetics industry learn from the food industry and prevent damage to marine ecosystems when sourcing? That’s just one of the issues raised by Organic Monitor, which addressed sustainable sourcing of marine ingredients at the European edition of the Sustainable Cosmetics Summit, which took place in Paris late last month.

According to Organic Monitor, cosmetic and ingredient firms are developing new materials from coastal plants, seaweeds, algae and sea minerals. The Greek company Apivita, for example, is using sea fennel in sun care products, while Italy’s Lacote has a comprehensive range of anti-cellulite skin care products formulated with Guam seaweed. Sea algae, rich in vitamins and minerals, are becoming a common source of anti-aging actives. Other brands are using sea minerals in their formulations, looking to emulate the success of Dead Sea mineral-based products.

High demand for marine ingredients is increasing the number of raw material suppliers specializing in such products. The Norwegian firm Aqua Bio Technology has developed a novel range of ingredients derived from salmon hatcheries, while US-based Heliae is using new strains of algae for cosmetic applications. Other companies such as Lipotec and BiotechMarine are using biotechnology to harvest actives from marine sources.

Due to the cosmetics industry’s insatiable appetite for novel ingredients, Organic Monitor expects marine sourcing to increase in the coming years. The challenge is to combine innovation with sustainability. In this respect, natural cosmetic firms could lead the way since many have sustainable sourcing embedded in their corporate DNA.

According to Organic Monitor, there are signs this development is already occurring. The German company OceanBasis has set up a sustainable aquaculture farm in the Baltic Sea to produce algae for its natural cosmetics. The certified farm is providing a sustainable source of active ingredients for its Oceanwell range.

More info:www.sustainablecosmeticssummit.comor

CPL Aromas Paris Hosts 2012 Perfumer’s Conference

Perfumers gathered at CPL’s bi-annual conference designed to inspire creativity.
• FRANCE: Perfumers from CPL’s global divisions gathered in Paris in October for the company’s bi-annual Perfumers conference. The three-day event provided a forum for all of the company’s perfumers to meet, share information and inspire creativity.

Chaired by CPL’s global director of perfumery, Christian Provenzano, the event provided an insight into latest trends, product and market reviews, extraction techniques and new raw materials. In addition, fragrances were presented by all perfumers in the theme of ‘Chocomania’ in which each perfumer created a chocolate inspired fragrance for the company’s library of Ecoboost fragrances.

The perfumers also shared information and tips on their favorite ingredients to use in a variety of fragrances as well as being presented with an update on the company’s Ecoboost and Aromaguard technologies. The forum also gives perfumers an opportunity to create new fragrances without the normal time constraints of client briefs allowing their creativity and inspiration to flow.

The event concluded with company CEO Chris Pickthall awarding prizes for the best fragrance creations.

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Rahn Tapped by Dr. Straetmans For the UK, Ireland

• GERMANY: German firm Dr. Straetmans GmbH has decided to shift the distribution for the United Kingdom and Ireland to Rahn (UK) Ltd. effective Oct. 1, 2012. By doing so, Dr. Straetmans extended its distribution activities with Rahn that already existed for two decades in other regions.

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Wacker Expands DKSH’s Representation in SE Asia

• GERMANY: Munich-based Wacker Group is expanding collaboration with the Swiss market expansion services group DKSH in Southeast Asia. In addition to representing Wacker biotech products, DKSH now markets pyrogenic silica and silicones for the cosmetic, food and pharmaceutical industries.

Wacker transferred responsibility for marketing cyclodextrins, cystine and cysteine in Southeast Asia to DKSH in early October. Starting in November, the regional service portfolio of this market expansion services group also included some of the chemical company’s other products. The specific products in question are pyrogenic silicas (sold under the HDK trademark) and Belsil functionalized silicones, both of which are used as auxiliaries or additives in a variety of formulations in personal care, food and pharmaceutical products.

“The markets in Southeast Asia are experiencing dynamic growth and becoming more and more important to us,” stressed Dr. Jürgen Frisch, head of distribution management at Wacker.

“Collaboration with DKSH now allows us to better serve potential customers in the region while continuing to develop our market position for pyrogenic silica and Belsil products.”

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Beiersdorf To Take Control of Turkish JV

• TURKEY: Effective next month, Beiersdorf AG, Hamburg will acquire the remaining 50% equity in the EBC Eczacıbası-Beiersdorf Kozmetik Ürünler Sanayi ve Ticaret, Istanbul, Turkey.

To date, Eczacıbası Holding and Beiersdorf AG has each held a 50% stake in this company, which was founded in 1993. Beiersdorf and Eczacıbası will continue their collaboration in defined areas of business in Turkey, according to Beiersdorf.

“Turkey already is an important market for Beiersdorf and will gain even more importance in the future. We express our gratitude to our long-standing partner for the successful cooperation over the past 20 years. It is through this shared commitment that we have been able to grow our brands—above all Nivea—and achieve leading market positions,” said Stefan F. Heidenreich, CEO of Beiersdorf AG.
Founded in 1942, Eczacıbası is a prominent Turkish industrial group with 39 companies, 10,950 employees and a combined net turnover of more than $2.7 billion in 2011. Eczacıbası’s core sectors are building products, healthcare and consumer products.

Shiseido Products To Be RSPO-Certified by 2013

• JAPAN: Shiseido’s total volume of palm oil used as a raw material of cosmetic products will be Roundtable on Sustainable Palm Oil-certified oil by 2013. Shiseido joined RSPO, an international non-profit organization, in 2010 and considers the need to preserve biodiversity (to preserve the bounty of the Earth) during every stage of the product life cycle, from the procurement of cosmetics ingredients to manufacturing, distribution and sales, and strives to utilize sustainable resources, according to the company.

At the RSPO General Assembly in March 2012 for ordinary members, the resolution was passed that all RSPO ordinary members be required to submit a time bound plan to produce, trade, process and/or purchase and use 100% certified sustainable palm oil prior to the next General Assembly, which was slated for Nov. 1, 2012.

Clariant Colorants Meet Nordic Swan, EU Ecolabel

• GERMANY: Clariant supports customers in their pursuit of eco-label status for consumer and industrial cleaning products, with the unveiling of a core range of colorants (dyes and pigments) that meets the requirements of the Nordic Ecolabel “Nordic Swan” and the EU Ecolabel.

Clariant’s portfolio of recommended dyes, pigments and pigment preparations for the use in products bearing eco-labels is suitable for a broad variety of applications including professional cleaners, as well as cleaning products found in daily life—from laundry and dishwasher detergents to soaps and cosmetic products.

In order to be eligible for the Nordic and EU Ecolabel, ingredient formulations for each individual cleaning product group must fulfill certain criteria regarding safety toward health or the environment; for example, bans or limits certain hazardous substances, aquatic toxicity or biodegradability.

Additionally, for some cleaning product categories, specific criteria for colorants are defined, such as approval for use in foodstuffs or having no bio-accumulation potential. Under the EU Ecolabel, this affects certain personal care products (soaps, shampoos and hair conditioners). The Nordic Ecolabel defines colorant specific criteria for a broad range of cosmetic products and detergents (cleaning, dishwash and laundry agents).

To ensure it offers only the most suitable products, Clariant has also taken the voluntary step of choosing colorants which are free of any hazard label. This is not explicitly specified within the eco-label criteria.

Clariant’s Duasyn and Sanolin water soluble dyes are available in liquid or powder form and cover a wide range of shades within the color spectrum. Pigments and pigment preparations complete the range and offer Clariant’s customers a broad variety of color solutions to formulate all desired cleaning products.

The full range was presented publicly for the first time at the 59th SEPAWA Congress for the detergents, cosmetics and perfume sectors in October 2012.

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DKSH To Distribute Tagra Encapsulated Actives in Asia

• ASIA: DKSH Business Unit Performance Materials has been appointed as a distributor for Tagra’s range of encapsulated actives, oils and pigments. The products are developed and produced by applying Tagra’s RND (Release On Demand) manufacturing technology, which seals each micro-capped ingredient from chemical and cross-link reactions, degradation, color change or loss of potency during production and for extended periods thereafter.

Under the agreement DKSH provides marketing, sales, logistics and distribution services to Tagra in China, India, Korea, Philippines, Thailand and Vietnam.

The regional contract was signed in August at Tagra’s headquarters in Tel Aviv, Israel.

“We are delighted that Tagra has chosen DKSH as their distribution partner across Asia because of our excellent reputation in the personal care industry. Tagra’s unique technology makes its ingredients not only stable and durable but enables personal care products to retain all the effectiveness that consumers want. In addition, through five innovation centers in the region, we are able to offer first-class technical support and formulation services and look forwarding to offering new and exciting formulations with Tagra’s ingredients,” commented Cesar Saez, vice president, business line personal care industry, DKSH Performance Materials.

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