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L’Oréal opens its largest factory in Indonesia

By Andrew MCDOUGALL , 08-Nov-2012
Last updated on 03-May-2013 at 11:10 GMT

Cosmetics maker L’Oréal has invested €100 million ($128 million) in its largest factory in the world in Indonesia as it continues to meet its objective of reaching one billion new consumers.

The new 66,000 meter squared building is located at the Jababeka Industrial Estate, West Java, Indonesia, around 60 kilometers east of the country’s capital, Jakarta, and will serve as the production hub for the South-East Asian region.

“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.

ASEAN focus

“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 L’Oréal’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 the company.

“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.

The new plant will manufacture hair and skin care products for the mass market brands, L’Oréal Paris and Garnier; with 30 percent of the production catering to the domestic market while 70 percent will be distributed to all other countries in the South-East Asian region.

Economic contribution

The facility will also see the beauty firm making a contribution to the local people and economy as 450 Indonesians have been employed at the new factory, many of which have been offered a transfer incentive to facilitate the move.

In addition, the factory, which plans to expand according to market needs, will use local materials and suppliers as much as possible, says L’Oréal.

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.”

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