L’Oréal’s first factory at the heart of the Arab World, located near Cairo, was inaugurated last week.
With a staged investment totalling 50 million euros, this new factory serves to meet the fast-rising demands of consumers in the region and will be the production hub for L’Oréal’s Consumer Products Division in the Middle East and North Africa region.
Actually, the greenfield project was completed in 2013, however its official opening ceremony was delayed. The building runs across an area of 17,000 m2, including manufacturing and warehouse facilities with a three times expansion potential of its current size. Initially dedicated to hair care and hair colouring products, the factory has extended recently its production to skincare.
“With the rising demand of consumers across the region for innovative and high quality beauty products, it was crucial for L’Oréal to have a production facility close to its key markets and able to adapt the product offer to local specificities. The Cairo plant reflects our confidence in the continuous expansion of the MENA market and our strong commitment to Egypt as a strategic production hub,” said Geoff Skingsley, L’Oréal’s Executive Vice-President, Africa Middle East Zone.
The new Cairo plant manufactures L’Oréal Paris and Garnier products. 10% of the production caters to the domestic market while 90% is exported to other countries in the region. In 2014, the plant produced 50 million units and has the potential to double its production capacity in the next three years.
L’Oréal’s plant in Cairo employs nearly 200 people. In addition, the factory sources more than 70% of its packaging needs amongst regional suppliers and plans to use local materials and suppliers as much as possible.