L'Oreal secures position in Latin America with second plant in Mexico
SAN LUIS POTOSÍ — French beauty company L’Oréal has announced the opening of what it said is the largest hair color production plant in the world in terms of production capacity.
With an investment totaling $100 million, this new factory will double the production capacity in Mexico, and will supply both Latin America and North America.
"I welcome L’Oréal’s decision and the company’s confidence in our country. The investment of [$100 million] and the creation of 1,200 jobs mark the strengthening of this confidence in Mexico. I extend a warm welcome to all the employees of this important group" stated Enrique Peña Nieto, president of Mexico.
Focusing entirely on hair color products, the facility is located in the “Logistik II” Industrial Park, in Villa de Reyes, State of San Luis Potosí. L’Oréal’s other production plant is located in Mexico City.
"The L’Oréal Group has decided to open its new production plant in Mexico, since this is one of the most strategic countries for the group, a key crossroad between North America and Latin America. To have built our largest hair color plant here shows once more our deep commitment to provide the market with superior quality products and great value" stated Jean-Philippe Blanpain, EVP of operations for L’Oreal.
In line with the group’s goal to reach one billion new consumers in the next 10 years, this new factory is also a part of L’Oréal’s global strategy towards greater specialization of its production by business segment, the company stated.
The plant in San Luis Potosí started operations in April 2012, with a targeted production of more than 100 million units in 2013, and more than 210 million in 2014 – for a total production of 400 million cosmetics units in the country (including the Mexico City plant).
It currently manufactures hair color products for L’Oréal Paris, Garnier, SoftSheen Carson and, from 2013, for L’Oréal Professionnel.
Regarding sustainability, the plant already features advanced technologies for water treatment and solar powered equipment – with wind energy coming in the next few months. After its distribution center, the new plant is also in the process of becoming LEED certified.
L’Oreal Mexico has reduced water consumption per unit by 60% and CO2 emissions per unit by 60%, which is over and above the group’s objective to decrease by 50% water consumption, CO2 emissions, and waste by 2015, the company stated.