CAIRO: L’Oréal Egypt has produced 50 million units in 2014 and has the potential to double its production capacity in the next three years, Managing Director, Benoit Julia said Thursday.
Julia’s statement was part of an interview with The Cairo Post on the sidelines of the inauguration of L’Oréal’s 1st factory in Egypt Thursday, with an investment cost valued 50 million euros ($57 million). Minister of Investment Ashraf Salman and French Ambassador to Egypt Andre Parant were present at the inauguration.
“Egypt’s geographical location and big market of nearly 90 million consumers were key reasons that encouraged L’Oréal to choose Egypt to be a regional hub for production in Middle East and North Africa (MENA,)” Julia told The Cairo Post.
Julia added that “Around 10 percent of total production will be directed to the domestic market, and 90 percent will be exported to other countries in the MENA region.”
The local market has great potentials for growth, in light of the improvement in the economy due to the reforms adopted recently by the government, said Julia.
“Over the past six months I have spent in Egypt, I have conducted several researches on both men and women. The researches indicated that Egyptian consumers are always seeking high quality products, but affordable at the same time. That is why we decided to establish this factory in Egypt,” said Julia.
Ninty-five percent of the new plant’s nearly 300 employees, as well as half of its management crew are Egyptians, said Julia. He further noted that his company was committed to developing talent of its crew with more than 10,000 hours of training courses per year along with training programs for its managers which took place in Paris and Dubai.
The total value of French direct investments in Egypt amounts to some 3 billion euros, said Ambassador Parant at a news conference held at the new plant Thursday.
Parant added that more than 14 French companies have businesses in Egypt, employing 33,000 workers. L’Oreal’s new plant reflects French businessmen’s t trust in Egypt’s investment climate, said the ambassador.
Minister of investment said: “Egypt is a big market with around 90 million consumers and has access for 1.6 billion consumers worldwide through trade agreements with Europe and neighboring countries.”
L’Oréal owns a total of 43 factories worldwide, including the new Cairo plant that manufactures L’Oréal Paris and Garnier products. Egypt’s factory was basically producing hair care and hair coloring products, but it has extended its production to skincare recently, said Geoff Skingsley, L’Oréal’s Executive Vice-President, MENA region.