Wellness Franchise Opportunities

LOrealFeb, 23 2015

Global beauty brand L'Oreal opens first factory in Egypt

Global beauty products giant, LOreal recently inaugurated first factory in Egypt, adding to the total of 43 factories worldwide.

By Agencies

Known for offering par excellence range of products, global beauty giant L’Oréal has recently inaugurated its Egyptian factory near Cairo in the Pyramids Industrial Park in 10th of Ramadan City.

A production hub for the brand’s Consumer Products Division in the Middle East and North Africa, the Egyptian factory has actually been in operation since 2013. The site, which received 50 million Euros of staged investment, produced 50 million units in 2014. That capacity could be doubled over the next three years.

According to a leading international news agency WWD, Geoff Skingsley, L'Oréal’s executive vice president, Africa Middle East Zone said, "With the rising demand from 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 to be able to adapt the product offer to local specificities. The Cairo plant reflects our confidence in the continuous expansion of the Middle East-North Africa market.”

In addition to the Egyptian factory, which manufactures products for L'Oréal Paris and Garnier, even though its 90 per cent of production is destined for other countries in the region, the new factory is an addition to the brand’s already existing 43 factories functioning across the globe.

About 10 per cent of the brand’s production caters to the domestic market, while 90 per cent 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.

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

 

Image Courtesy: LOreal

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