L’Oréal invests €50 million in Egypt facility to meet rising demand

By Andrew MCDOUGALL

- Last updated on GMT

Copyright: D.Degner/Capapictures
Copyright: D.Degner/Capapictures

Related tags North africa Middle east

Beauty behemoth L’Oréal invested €50 million in its first factory at the heart of the Arab World, located near Cairo in the Pyramids Industrial Park of 10th of Ramadan, as it looks to meet the rising demand for products in the region.

The new facility, which was inaugurated yesterday and is one of 43 L’Oréal plants around the world, will also be the production hub for L’Oréal’s Consumer Products Division in the Middle East and North Africa region.

With the rising demand of consumers across the region for innovative and high quality beauty products, it was crucial for L’Oréal to have a production facility close to its key markets and able to adapt the product offer to local specificities,” ​says Geoff Skingsley, L’Oréal’s Executive Vice-President, Africa Middle East Zone.

The Cairo plant reflects our confidence in the continuous expansion of the MENA market and our strong commitment to Egypt as a strategic production hub​.”

Facility

The state-of-the-art facility is dedicated to consumer products, manufacturing L’Oréal Paris and Garnier products; with 10% of the production catering to the domestic market while 90% is exported to other countries in the region.

In 2014, the plant produced 50 million units and has the potential to double its production capacity in the next three years.

The plant features fully automated processing skids with automated recipe control, automated packing lines, fully integrated worldwide Enterprise Resource Planning (ERP) to optimize supply chain and quality management.

Special focus was given to environment with an energy efficient building and highly performing state-of-the-art technology for water treatment.

‘Sharing Beauty with All’

The factory is also the first LEED certified factory in Egypt and aims to contribute to L’Oréal’s ‘Sharing Beauty With All’ commitments by limiting its waste generation and water consumption as well as its CO² emissions.

The plant employs nearly 200 people and L’Oréal says it invests in more than 10,000 hours of training per year including tailored induction programs for its managers which take place in Europe and North America.

In addition, L’Oréal’s factory in Egypt prides itself in sourcing more than 70% of its packaging needs amongst regional suppliers and plans to use local materials and suppliers as much as possible.

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