L’Oreal eyes expansion of its Kentucky production facility

By Simon Pitman

- Last updated on GMT

Related tags Economics

L’Oreal has confirmed that it is proposing to make a $42m investment to increase the production capacity at its production facility in Kenton County, Kentucky.

The proposed expansion would extend the facility to almost double the size by building on land that the company acquired next to the New Buffington Road facility, in Florence back in 2010, according to a report in the Kentucky Enquirer that was confirmed by L’Oreal.

L’Oreal is seeking to get payroll taxation breaks of $5m an $800,000 in tax incentives from the Kentucky Economic Development Finance Authority, which it claims will make the proposed expansion economically viable.

Hair care and skin care

The facility is currently focused on the manufacturing of hair care products, most specifically shampoos and conditioners for the Garnier brand, as well as a number of skin care brands, specifically lotions and creams.

 “L’Oréal USA is pleased to learn that the Kentucky Economic Development Finance Authority has granted preliminary approval of incentives for a potential expansion of our Florence, Kentucky manufacturing plant,”​ a company statement said.

 “Our company is considering a potential expansion of that facility and the state incentives are central to our evaluation of the project and the proposed site.”

One of six major facilities in the US

L'Oreal earned a star status under the Voluntary Protection Program (VPP) from the US department of Labor for its manufacturing facility in Kentucky back in 2007. 

At the time the facility was the last of the company’s six manufacturing facilities in the US to receive the certificate, granted by the Occupational Safety and Health Administration (OSHA).

The company's production and distribution facilities are based in New Jersey, Arkansas, Illinois, Ohio, Colorado and Texas.

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