By  on September 27, 2010

PARIS — L’Oréal said on Thursday that it is opening its first factory in Russia, in the Kaluga region.

The company said the move is in line with its aim of reaching one billion new consumers within the next decade.

“With sales of 563 million euros [or $751.1 million at current exchange] in 2009, L’Oréal Russia is the market leader and shows great business potential for the coming years,” the company stated. In the first half of 2010, L’Oréal’s business in Russia posted 17.6 percent revenues gains.

The firm’s new 111,111-square-foot plant is designed to manufacture shampoo, plus hair conditioner and dyes, for the L’Oréal Paris and Garnier brands. They will be sold in Russia, Ukraine and other Commonwealth of Independent States countries. Initially, the factory will produce up to 120 million units annually, and in the future it could manufacture more than double that amount.

“Since 2004, L’Oréal Russia has tripled its sales in local currency,” stated Pekka Huttunen, L’Oréal Russia general manager. “It is the eighth market for the group in terms of sales and is one of L’Oréal’s fastest-growing markets.”

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