L’Oréal has announced a new €60m investment in its plant in Gaunchy, Northern France, to further accelerate its fragrance production.
The upgrade will enable the French beauty giant to double its production capacity at the site in the Hauts-de-France region, which specialises in manufacturing perfumes for brands within L’Oréal’s Luxe Division.
The move is in response to the “strong growth of the perfume business internationally”, read a company statement.
The Gauchy factory employs more than 230 people and is a major player in L’Oréal’s exports.
It produces fragrances for brands such as Armani, YSL, Lancôme, Valentino, Prada, Azzaro and Mugler.
The factory operates on 100% renewable energy and maintains ties with local community organisations, including the School of Industry, Humando, Excellence Ruralités and ARPEJEH.
The investment is the latest move by L’Oréal to reaffirm its “strong local, scientific and industrial presence”, read a statement from the group.
L’Oréal has accumulated nearly €500m in investments in France over the past three years in both industrial development and research and innovation.
“France is the beating heart of L’Oréal, a breeding ground for innovation, expertise and talent that has shaped our group since its inception,” said Nicolas Hieronimus, CEO of L’Oréal.
“The €500m invested in France over the past three years is concrete proof of this.
“It demonstrates that a cutting-edge industry can not only thrive in France, but also shine throughout the world, provided that competitive pressures do not hinder this ambitious long-term vision."
L’Oréal’s factory in Saint-Quentin – the group’s flagship industrial site and oldest plant in France – has received €70m of this strategic investment over the past few years.
The investment has aimed to develop a new manufacturing area and packaging lines dedicated to skin care products, notably for CeraVe.
Nearly €60m has also been invested to strengthen the infrastructure dedicated to dermocosmetic products, particularly for La Roche-Posay.
This includes significantly increasing production capacity and infrastructure, modernising equipment for even greater innovation and improving the sustainability of all L’Oréal sites.