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L’Oréal to Extend Russian Plant

The world’s largest beauty giant will invest more than 2.5 billion rubles, or $35.6 million at current exchange, in the unit.

MILAN — L’Oréal said Wednesday that it will extend its 111,111-square-foot plant in Russia’s Kaluga region in response to the increasing demand for its beauty products in the country.

The beauty giant plans to invest more than 2.5 billion rubles, or $35.6 million at current exchange, to add 152,222 square feet to the unit located some 55 miles south of Moscow in the Vorsino industrial park. L’Oréal said the addition will almost double the production capacity of the plant plus integrate new technologies there.

Construction on the unit, which was open in 2010 and manufactures hair-care products and hair dyes for the L’Oréal Paris and Garnier brands, should be finished by July 2017.

L’Oréal has already implemented its sustainability program Sharing Beauty With All, so the plant has been able to reduce water consumption by 67 percent versus 2011 and obtain zero waste to landfill.

“A special focus of the extension project is given to highly performing state-of-the-art technology for water treatment,” L’Oréal stated.

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On a social level, the plant’s extension helps to develop local employment, as the unit will continue hiring specialists from the region and aims to develop partnerships with suppliers in the area.

L’Oréal’s sales in 2015 in Russia reached 37 billion rubles, or $610.5 million at average exchange for the period, making it the country’s leader in the beauty market, according to the company, which cited Euromonitor figures that excluded sales of soap.

In other L’Oréal news, the company was named one of five beneficiaries of the CEO Leadership Award during the 2016 Women’s Empowerment Principles event held Tuesday at the United Nations headquarters in New York.

Jean-Paul Agon, L’Oréal chairman and chief executive officer, was awarded for his demonstrated commitment to and implementation of policies that advance and empower women in the workplace, marketplace and community, the company said.

“We recognize the vital role women play in society, and we are convinced that their effective empowerment is a driver of progress,” stated Agon. “We also know that gender inequality is still deeply rooted in many societies. This has to change. The Women’s Empowerment Principles offer a clear and actionable roadmap to help frame and address this complex issue together. Measuring what we do is important for us to communicate ethically with integrity and with transparency on our achievements but also on our challenges.”