Avon to Close Montreal Plant, Move Operations to U.S.

Beauty products company Avon Products Inc., New York, NY, said it will close its Montreal plant, eliminating about 150 jobs, as part of its ongoing restructuring plan.

The company said it will phase out its Montreal-based manufacturing facility by the first quarter of 2004, and transfer the production to Avon’s larger U.S. plants in Springdale, OH and Morton Grove, IL. About 150 jobs will be lost, the majority of which will be eliminated by the end of 2003.

“This has been a very difficult decision,” said Susan J. Kropf, Avon’s president and chief operating officer. “However, in evaluating the options, consolidating Canadian manufacturing with our U.S.-based facilities will enable Avon to more fully leverage the benefits of a unified supply chain. This will free up significant resources that can be reinvested in business growth.”

Avon, which is the world’s largest direct seller of cosmetics, said that its direct selling operations in Canada, which employ 950 associates to support the country’s 71,000 independent sales dealers, will not be affected by the closure. Canada is Avon’s eighth largest market, and Avon is the country’s No. 1 direct seller.