L’Oréal has announced the opening of its first factory in Russia, located 85 km south of Moscow, in the Kaluga region. In line with the group’s target to reach one billion new consumers in the next ten years, the factory will respond to increased demand at the local level. With sales of 563 million euros in 2009, L’Oréal Russia shows great business potential for the coming years. It registered a sales growth of +17.6% in the first-half of 2010.

Completed in just over one year from the start of construction to production-line testing, the L’Oréal Russia factory is located between the business hubs of Moscow and Kaluga. The plant, which is the newest of the 38 L’Oréal factories worldwide, will manufacture shampoos, hair conditioners, and hair-dyes for the L’Oréal Paris and Garnier brands, to be distributed in Russia, Ukraine and in the CEI countries.

A part of the Varsino industrial park, the factory boasts a surface area of 10,000 m2. The factory’s initial output will reach up to 120 million units per year, with the potential for production to more than double as demand continues to evolve. The plant features high-speed production lines and an advanced technology water treatment plant.

“This opening reflects L’Oréal’s commitment to locate industrial operations teams as close as possible to key markets to seize opportunities more effectively and to be more responsive, bringing success to product launches in Russia,” said Jean-Philippe Blanpain, L’Oréal operation managing director.

“Since 2004, L’Oréal Russia has tripled its sales in local currency. It is the 8th market for the group in terms of sales and is one of L’Oréal’s fastest growing markets. L’Oréal’s first factory in Russia will play a key role in responding to the growing demand in Russia, in Ukraine and in the CEI countries,” added Pekka Huttunen, L’Oréal Russia general manager.

Today, the L’Oréal Russia factory employs more than 60 people, and will employ up to 300 people in the future. The factory, which plans to expand according to market need, will recruit specialists from the region to adapt its production on a local level, and will use local materials and suppliers as much as possible. The factory is also currently working to develop partnerships with colleges, schools and universities in Kaluga to optimize recruitment programs.