L'Oreal Inaugurates its Largest Factory in the World in Indonesia to Meet Fast-rising Demand in the South-East Asian Beauty Market

PR51294

JABABEKA, Indonesia, November 7 /PRN=KYODO JBN/ --

- L'Oreal invests EUR 100 million in the first LEED certified factory in

Indonesia

L'Oreal 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.

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http://www.multivu.com/mnr/58636-loreal-beauty-in-indonesia

"As we have been successfully operating a factory In Indonesia since 1986, the

country is therefore the clear choice for L'Oreal's ASEAN production hub," said

Jean-Philippe Blanpain, L'Oreal'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'Oreal.

"With the highest growth of the Group in Asia Pacific, Indonesia is a key

contributor to the L'Oreal 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'Oreal's Executive Vice-President, Asia Pacific Zone.

State-of-the-art facility dedicated to consumer products

L'Oreal's first factory in Indonesia was established in 1986 in the suburb of

Ciracas, Jakarta. Due to the tremendous growth experienced over the last 4

years, it was decided to build a new and larger facility, and to transfer all

the activities to the Jababeka plant.

Making a total of 43 L'Oreal factories worldwide, the new Jababeka plant will

manufacture hair and skin care products for the mass market brands, L'Oreal

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.

In 2013, the plant will produce 200 million units and has an installed capacity

of 300 million units with the potential to reach up to 500 million units per

year. The plant features state-of-the-art facilities including high-speed

production lines, processing tanks with automatic recipes management, a

lighting system based on movement detection and an advanced technology water

treatment plant which is currently under development.

Commitment to sustainable development

The Jababeka plant is the first LEED certified factory in Indonesia and has

been built following LEED requirements. These consist of a US standard which

defines excellence in terms of design and building construction process with

regard to key aspects of sustainability including water and energy

efficiencies, atmosphere management, materials and resources utilization and

environmental quality.

Since 2005, L'Oreal Indonesia has reduced waste and water consumption per unit

by 52%, and CO2 emissions per unit by 38%. The goal is to decrease absolute CO2

emissions by 50% from 2005 to 2015 (from 2,000 to 1,000 tons).

Contribution to the local people and economy

L'Oreal 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'Oreal 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'Oreal 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.

In addition, the factory, which plans to expand according to market needs, will

use local materials and suppliers as much as possible.

Mohamad S. Hidayat, Minister of Industry of the Republic of Indonesia stated,

"The government of Indonesia appreciates the strategic decision taken by the

L'Oreal Group in supporting the development of the industrial sector in

Indonesia, specifically the beauty industry, by opening their largest factory

in Indonesia."

For more information, please visit http://www.beauty-indonesia.com

About L'Oreal

L'Oreal, the world's leading beauty company, has catered to all forms of beauty

in the world for over 100 years and has built an unrivalled portfolio of 27

international, diverse and complementary brands. With sales amounting to 20.3

billion euros in 2011, L'Oreal employs 68,900 people worldwide. Regarding

sustainable development, Corporate Knights, a Global Responsible Investment

Network, has selected L'Oreal for its 2012 ranking of the Global 100 Most

Sustainable Corporations in the World. L'Oreal has received this distinction

for the 5th consecutive year. http://www.loreal.com

About L'Oreal Indonesia

In Indonesia, L'Oreal has been present since 1979 and is now operating through

two entities: PT L'Oreal Indonesia, which handles marketing and distribution

activities, and PT Yasulor Indonesia, which focuses on manufacturing

operations. L'Oreal brands in Indonesia comprise of: L'Oreal Professionel;

Kerastase Paris; Matrix; L'Oreal Paris; Maybelline New York; Garnier; Lancome;

Biotherm; Shu Uemura; Yves Saint Laurent; Kiehl's; perfumery which includes

Giorgio Armani, Ralph Lauren, and Diesel; and The Body Shop which is

distributed by a third party agent. http://www.loreal.co.id

International Press Contact:

Carolyn Giang

+33(0)1-47-56-8788 - carolyn.giang@loreal.com

SOURCE: L'Oreal