PARIS — L’Oréal opened its largest factory worldwide, in Indonesia, the company announced today.
Located in West Java, approximately 37 miles from Jakarta, it measures 730,000 square feet and represents a staged investment worth 100 million euros, or $128.2 million at current exchange. It will serve as the production hub for Southeast Asia.
The new factory is to manufacture hair and skin care products for L’Oréal Paris and Garnier. Thirty percent of the production will be destined for the domestic market, with the remainder to be sold elsewhere in Southeast Asia.
Next year, the plant will make 200 million units, and it has the capacity to reach up to 500 million units yearly.
RELATED STORY: L’Oréal Q3 Sales Rise 11.8% >>
The factory is the first to be LEED-certified in Indonesia.
“With the highest growth of the group in Asia Pacific, Indonesia is a key contributor to the L’Oréal objective of reaching 1 billion new consumers,” said Jochen Zaumseil, L’Oréal’s executive vice president for the Asia-Pacific zone. “The Jababeka plant reflects our confidence in the continuous expansion of the Indonesian market and our strong commitment to the country.”
L’Oréal established its first plant in Indonesia in 1986, in the suburb of Ciracas, Jakarta. The company employs almost 800 people in the country.
L’Oréal now has 43 factories worldwide.