L’Oréal invests in multi-million dollar manufacturing plant in Mexico

By Pooja Kondhia

- Last updated on GMT

L’Oréal is planning to invest $50 million in a new hair colour manufacturing facility in Mexico,as it seeks to increase international competitiveness and sees a strong potential for development in the area.

The new plant will be located in the state of San Luis Potosi, at Logistic Industrial Park II, in the city of Villa Reyes, and will supply to Latin America and the US.

L’Oréal Group has decided to invest in a new production plant in Mexico [due] to its privileged geographical location, international competitiveness with its trade agreements, and great potential of development​”, commented L’Oréal Mexico CEO, Luca Burei.

Making a $50 million investment in the construction of a 30,000m² plant in an area of 10 hectares; L’Oréal states that it will be its largest hair colour production worldwide.

Production is scheduled to start in the second quarter of the year 2012, and is expected to produce approximately 700,000 packages a day, and an approximate 200 million units per year to supply to the continent.

Double company production in Mexico

The new facility, expanding L’Oréal’s production capabilities, will double the total production in Mexico and at the same time, will simplify and improve operational productivity at the current production plant in Mexico City, which produces approximately 200 million products a year.

The new factory will generate around 400 jobs as well as 800 indirect employments, adding to the current number of 300 jobs at the Mexico City plant, which manufactures products for L’Oréal Paris, Garnier, L’Oréal Professional and Softsheen Carson.

The opening of a second plant in Mexico confirms the strategic importance of Mexico for L’Oréal Group and demonstrates its trust in this country as well as in its industrial know how​”, the Governor of San Luis Potosi, Fernando Toranzo Fernandez reiterated.

Furthermore, L’Oréal Mexico has a new supply chain distribution centre, operational from January 2010; the company claims to be number one in Mexico for its distribution channels, according to continued growth in its market shares, in volume and value, and

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