L'Oréal invests €60 million in the Gauchy factory due to 'strong growth' in its perfume division

L'Oréal has announced a new €60 million investment in its factory in Gaunchy, Northern France, to boost fragrance manufacturing.

The renovation will allow the French cosmetics giant to double production capacity at its Hauts-de-France facility, which specialises in perfume manufacturing for L'Oréal's Luxe Division brands.

According to a company statement, the decision is in reaction to the "strong growth of the perfume business internationally".

The Gauchy factory employs over 230 people and accounts for a significant portion of L'Oréal's export revenue.

It creates scents for companies including Armani, YSL, Lancôme, Valentino, Prada, Azzaro, and Mugler.

The firm uses 100% renewable energy and collaborates with local community organisations such as the School of Industry, Humando, Excellence Ruralités, and ARPEJEH.

L'Oréal's latest action to reassert its "strong local, scientific, and industrial presence" is the investment, according to a corporate statement.

L'Oréal has invested approximately €500 million in France over the last three years on industrial development, 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 €500 million invested in France over the last three years is clear evidence 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 France's oldest plant, has received €70 million in strategic investment in recent years.

The investment planned to create a new manufacturing facility and packaging lines for skin care products, namely for CeraVe.

Nearly €60 million has also been committed to develop the infrastructure for dermocosmetic goods, mostly for La Roche-Posay.

This entails dramatically boosting manufacturing capacity and infrastructure, modernising equipment to enable even more innovation, and improving the sustainability of all L'Oréal locations.

Source: Cosmetics Business