P&G to Close Clairol Plants, Consolidate

The Procter & Gamble Company unveiled plans to integrate its Clairol global manufacturing operations into its global beauty care business unit. P&G will maintain Clairol hair color manufacturing operations in Stamford, CT; Vallejo, Mexico and at its Rydalmere site in Sydney, Australia.

Hair care manufacturing will be consolidated primarily at existing P&G hair care plants globally. This grouping includes shampoos, conditioners and styling products. Consequently, the company will close Clairol manufacturing facilities in Lima, Peru; Maracay, Venezuela and Cramlington, UK and a distribution center in Edison, NJ. Most employees from the Cramlington plant will be transferred to P&G’s Seaton Delaval manufacturing site, or be considered for other European openings.

These actions will continue employment opportunities for approximately 800 of the current 1,550 manufacturing employees. The remaining 750 global employees will be considered for job openings across P&G’s businesses over the course of the transition period, or offered separations. The manufacturing consolidation will be finalized by fall of 2003 and will complete the integration plans for the Clairol acquisition.

“These plans are the result of strong teamwork by P&G and Clairol people in the course of a comprehensive 90-day sourcing study to ensure we fully leverage the combined strengths of the two companies in hair colors and hair care,” said Rob Matteucci, vice president, global color/professional products. “We regret the impact that this will have on those employees who will be leaving. We will move forward quickly to help all Clairol employees achieve positive outcomes, whether their future is in the combined P&G-Clairol business or they pursue other opportunities.”