Mary Kay Weighs R&D/Production Options

Mary Kay Inc. has hired commercial real estate services and investment firm CBRE to explore future options for the company's global manufacturing and research and development (R&D) facility located in Dallas. The company is weighing options to update its existing operation or building a new facility to house both manufacturing and R&D. 

The beauty company's current global manufacturing facility opened on Regal Row in Dallas in 1969.  Today, the 420,000-sq.ft. facility produces up to 1.1 million units of products per day, of which 57% are exported to Mary Kay Inc.'s international markets.

As CBRE completes its analysis, construction sites for a possible new facility will be considered in the Dallas/Fort Worth area, the beauty firm said.

“Approximately 75% of our business is overseas today and yet more than 50% of Mary Kay products produced at the Dallas manufacturing facility are exported to our international markets,” said David Holl, president and CEO for Mary Kay Inc.  “As we approach the status of a top five beauty brand globally, it's essential that we continue to have state-of-the-art manufacturing and research and development facilities to produce the highest quality skin care and color cosmetics for our more than 3.5 million independent sales force members worldwide.” 

Mary Kay Inc. employs approximately 600 manufacturing and R&D employees in Dallas.  

“Whether we update our current Regal Row facility or explore options to build a new one, our investment could range from $80 to $100 million,” said Holl.  “As we have been for more than 50 years, Mary Kay is committed to ensuring that our products consistently meet or exceed consumer expectations.  The analysis from CBRE will help point us in the right direction as we continue to provide best-in-the-industry products to our Mary Kay brand lovers worldwide.” 

Mary Kay Inc. is expected to make a decision by the end of the year.