Coty Inc. has plans to close a U.K. manufacturing facility, a company spokeswoman has confirmed.
The move to close the Seaton Delaval facility is part of Coty’s decision to consolidate its fragrance operations into fewer core centers. About 400 jobs may be cut as a result of the closure.
The company issued a statement: “Today [Tuesday] we have announced proposed changes to our international manufacturing network including our fragrance operation in Seaton Delaval. These proposals are the result of a detailed study of our expanded global manufacturing capacities and capabilities for each of our divisions following the merger with P&G Specialty Beauty brands and with the objective to enable our future growth.
“As a result of the study’s recommendations, we are proposing to consolidate our fragrance operations into fewer core centers, which will result in the proposed closure of the Seaton plant. Specific timelines are still under consideration and subject to consultation in relation to these proposals. If the proposals go ahead, the site will close by the end of [calendar year] 2018. It is anticipated that, subject to consultation, approximately 400 roles will be affected in Seaton.”
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“I am committed to fully supporting all our colleagues in Seaton through the coming months,” said Kay Plumley, site leader at Seaton Delaval. “Our priority is to work closely with them and their families throughout the consultation and to ensure that everyone is treated fairly and with respect.”
Also on Tuesday, Coty said it would expand its existing site in Ashford in Kent to become a core center. The company said it would release further information on that plan in the coming weeks.
The Seaton Delaval closure comes after Coty completed an $11.6 billion deal to buy 41 beauty brands from Procter & Gamble (the Specialty Beauty Portfolio), including fragrance licenses for Hugo Boss and Gucci. That transaction prompted the business to reorganize into three segments — Coty Luxury, Coty Consumer Beauty and Coty Professional.