Coty Plans to Close German Fragrance Manufacturing Site
PARIS — Coty Inc. said Wednesday that it plans to close its fragrance manufacturing site in Cologne, Germany.
That site, which produces a range of perfume products, counts about 300 employees.
The closure is planned to be made in stages by this summer.
“We have taken this difficult decision to consolidate our fragrance manufacturing capacity in order to increase the efficiency of our operations,” said Richard Jones, chief global supply chain and R&D officer at Coty. “Coty is the world’s leader in fragrance, but our network has been operating overcapacity in recent years and the considerable impact of COVID-19 has accelerated the need to take action.
“This move will address the imbalance to increase our competitiveness and ensure we fully leverage our scale and remaining manufacturing sites,” he continued. “This is a hard but necessary part of the transformation of Coty: building a stronger, leaner and more focused business that’s well-positioned for the long term.”
Coty plans to adapt its other manufacturing sites to help deal with overcapacity. The group said the changes should deliver annual net savings.
You May Also Like
Supply chain optimization is expected to contribute more than 20 percent of the $600 million cost savings Coty is aiming for by the end of 2023. That’s part of a strategy announced by Coty last year that involves returning to profitable growth, reducing debt, streamlining operations and addressing long-term financial challenges.
Coty’s fragrance portfolio includes brands such as Calvin Klein, Gucci, Marc Jacobs and Alexander McQueen.
For more, see:
Could Coty’s Turnaround Succeed in 2021?
Coty Closes $200M Kim Kardashian West Beauty Deal
Sue Nabi Wants to Make Coty the Place Everyone Wants to Work
Source: Read Full Article