07 November 2012

L’Oréal opens new €100 million factory in Jababeka, Indonesia

- Production hub for the South-East Asian Region 
- Jababeka plant is the first LEED certified factory in Indonesia 
- New plant employs almost 450 people 

Jababeka - 07 November 2012 – L’Oréal announced today the opening of its largest factory in the world. The 66,000 m2 building is located at the Jababeka Industrial Estate, West Java, Indonesia, around 60 kilometers east of Jakarta. With a staged investment totalling EUR 100 million (approximately IDR 1.25 trillion), this new factory will serve as the production hub for the South-East Asian region.

“As we have been successfully operating a factory In Indonesia since 1986, the country is therefore the clear choice for L’Oréal’s ASEAN production hub,” said Jean-Philippe Blanpain, L’Oréal’s Executive Vice-President of Operations. “Building our largest factory in Indonesia once again demonstrates our dedication to providing Indonesians and the markets in the ASEAN region products with superior quality and value.” 

In line with the Group’s ambition to reach one billion new consumers in the next ten years, the factory will respond to increased market demand in Indonesia and ASEAN, which represents new frontiers of growth for L’Oréal. 

“With the highest growth of the Group in Asia Pacific, Indonesia is a key contributor to the L’Oréal objective of reaching one billion new consumers. The Jababeka plant reflects our confidence in the continuous expansion of the Indonesian market and our strong commitment to the country,” said Jochen Zaumseil, L’Oréal’s Executive Vice-President, Asia Pacific Zone.

Making a total of 43 L’Oréal factories worldwide, the new Jababeka plant will manufacture hair and skin care products for the mass market brands, L’Oréal Paris and Garnier. 30% of the production will cater to the domestic market while 70% will be distributed to all other countries in the South-East Asian region. The Jababeka plant is the first LEED certified factory in Indonesia and has been built following LEED requirements. 

L’Oréal employs nearly 800 people in Indonesia with almost 450 of them working at the new factory in Jababeka. Throughout the transfer process of the factory, L’Oréal has succeeded in retaining 96% of its existing employees from the former factory in Ciracas. In order to facilitate the move to the Jababeka premises 40 km away, L’Oréal provided employees with transfer and housing incentives. A total of 262 employees and their families have now become home owners in the surrounding areas of the new factory. 

L’Oréal, the world’s leading beauty company, has built a portfolio of 27 international, diverse and complementary brands. With sales amounting to 20.3 billion euros in 2011, L’Oréal employs 68,900 people worldwide. 

In Indonesia, L’Oréal has been present since 1979 and is now operating through two entities: PT L’Oréal Indonesia, which handles marketing and distribution activities, and PT Yasulor Indonesia, which focuses on manufacturing operations. 

Source: L’Oréal