L'Oréal Inaugurates its Largest Factory in the World in Indonesia
to Meet Fast-rising Demand in the South-East Asian Beauty Market
JABABEKA, Indonesia,
November 7, 2012 /PRNewswire/ --
L'Oréal
invests EUR 100 million in the first
LEED certified factory in Indonesia
L'Oréal announced today the opening of its largest factory in
the world. The 66,000 m2 building is located at the
Jababeka Industrial Estate, West Java,
Indonesia, around 60 kilometers east of
Jakarta. With a staged investment
totalling EUR 100 million
(approximately IDR 1.25 trillion),
this new factory will serve as the production hub for the
South-East Asian region.
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"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 Executive
Vice-President 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 ten 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 Executive Vice-President,
Asia Pacific Zone.
State-of-the-art facility dedicated to
consumer products
L'Oréal's first factory in Indonesia was established in 1986 in the
suburb of Ciracas, Jakarta. Due to
the tremendous growth experienced over the last 4 years, it was
decided to build a new and larger facility, and to transfer all the
activities to the Jababeka plant.
Making a total of 43 L'Oréal factories worldwide, the new
Jababeka plant will manufacture hair and skin care products for the
mass market brands, L'Oréal Paris
and Garnier. 30% of the production will cater to the domestic
market while 70% will be distributed to all other countries in the
South-East Asian region.
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 per year. The plant features
state-of-the-art facilities including high-speed production lines,
processing tanks with automatic recipes management, a lighting
system based on movement detection and an advanced technology water
treatment plant which is currently under development.
Commitment to sustainable
development
The Jababeka plant is the first LEED certified factory in
Indonesia and has been built
following LEED requirements. These consist of a US standard which
defines excellence in terms of design and building construction
process with regard to key aspects of sustainability including
water and energy efficiencies, atmosphere management, materials and
resources utilization and environmental quality.
Since 2005, L'Oréal Indonesia
has reduced waste and water consumption per unit by 52%, and
CO2 emissions per unit by 38%. The goal is to decrease
absolute CO2 emissions by 50% from 2005 to 2015 (from
2,000 to 1,000 tons).
Contribution to the local people and
economy
L'Oréal employs nearly 800 people in Indonesia with almost 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 Ciracas. In order to
facilitate the move to the Jababeka premises 40 km away, L'Oréal
provided employees with transfer and housing incentives. A total of
262 employees and their families have now become home owners in the
surrounding areas of the new factory.
In addition, the factory, which plans to expand according to
market needs, will use local materials and suppliers as much as
possible.
Mohamad S. Hidayat, Minister
of Industry of the Republic of Indonesia stated, "The
government of Indonesia
appreciates the strategic decision taken by the
L'Oréal Group in supporting the development of the
industrial sector in Indonesia,
specifically the beauty industry, by opening their largest factory
in Indonesia."
For more information, please
visit http://www.beauty-indonesia.com
About L'Oréal
L'Oréal, the world's leading beauty company, has catered to
all forms of beauty in the world for over 100 years and has built
an unrivalled portfolio of 27 international, diverse and
complementary brands. With sales amounting to 20.3 billion euros in 2011, L'Oréal employs
68,900 people worldwide. Regarding sustainable development,
Corporate Knights, a Global Responsible Investment Network, has
selected L'Oréal for its 2012 ranking of the Global 100 Most
Sustainable Corporations in the World. L'Oréal has received this
distinction for the 5th consecutive
year. http://www.loreal.com
About L'Oréal Indonesia
In Indonesia, L'Oréal has
been present since 1979 and is now operating through two entities:
PT L'Oréal Indonesia, which
handles marketing and distribution activities, and PT Yasulor
Indonesia, which focuses on manufacturing operations. L'Oréal
brands in Indonesia comprise of:
L'Oréal Professionel; Kerastase Paris; Matrix; L'Oréal Paris; Maybelline New York; Garnier; Lancôme;
Biotherm; Shu Uemura; Yves Saint Laurent; Kiehl's; perfumery which
includes Giorgio Armani,
Ralph Lauren, and Diesel; and The
Body Shop which is distributed by a third party
agent. http://www.loreal.co.id
International Press
Contact:
Carolyn Giang
+ 33(0)1-47-56-8788
- carolyn.giang@loreal.com
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