Following a review of the company’s operational, project management and commercial teams across Europe, Canada-based cosmetics supplier KDC/One has announced its intention to relocate some of its operations, potentially leading to the closure of the several sites in France and the UK.
Indeed, KDC/One plans to consolidate some of its production lines in its most competitive facilities in order to create centres of excellence that “will provide a strong platform for sustainable growth in the future.”
Centres of excellence
With the acquisition of the Alkos Group and Swallowfiled last year, KDC/One took control of three production sites in France (Inter Cosmétiques, Sagal Cosmétiques and Alkos Cosmétiques) and two sites in the United Kingdom (in Wellington, Somerset, and Bideford, North Devon), plus another industrial facility in Tabor, Czech Republic.
The restructuring plan will result in the pencil and soap manufacturing being transferred from the existing Swallowfield Bideford and Sagal Cosmétiques sites to the state-of-the-art Alkos Cosmétiques facility in Hesdin-l’Abbé, in Northern France, closed to Boulogne-sur-Mer. The transfer would involve investing in a new cutting-edge production line for soaps at the site.
In addition, deo sticks manufactured by Sagal Cosmétiques in Gallardon and the skin care and lip care products made by Swallowfield in Bideford will go across to Inter Cosmétiques KDC/One’s plant in Angers in Western France, which was inaugurated in June 2018.
The changes are likely to lead to the closure of the Sagal Cosmétique and Bideford facilities. In addition, some employees are at risk of redundancy at the company’s sites in Wellington, Somerset, and Paris, due to the reorganization in sales operations.
“This strategic review of our European businesses has been underway since last November. While these decisions have not been easy ones, they are necessary to move the businesses forward, allowing us to maximise production capabilities, continuously innovate and meet customer expectations in a highly demanding and competitive marketplace,” said KDC/One Europe President Matthew Gazzard. “We will be working closely with work representatives to ensure all our employees have access to the support they need during this time,” he added.
Eventually, KDC/One stressed that this refocussing of the company’s operations is in no way a response to the COVID-19 pandemic or to Brexit. “We had been strategically reviewing the business structure for many months following our acquisitions in Europe last year before the pandemic arose, albeit the events of recent months requires the company, as with all businesses, to build additional resilience into its operational model,” highlights Matthew Gazzard.
Consultations will soon commence with employees at risk of redundancy in France and in the UK.