Shiseido to open first new Japanese plant since 1980s

posted on February 4, 2016

Shiseido will set up its first new domestic plant in nearly four decades, aiming to cash in on growing demand for Japanese products in greater Asia and beyond.

The leading Japanese cosmetics maker will spend roughly 40 billion yen ($328 million) to build a facility in the Osaka Prefecture city of Ibaraki. It last opened a domestic plant in Kuki, Saitama Prefecture, back in 1983.

Construction is slated to begin in 2018 on a roughly 72,000-sq.-meter plot -- twice as large as one occupied by an existing Osaka plant that will shut down as the Ibaraki facility kicks off production in 2020.

The new plant, which will produce high-end offering, as well as mass-market lotions and moisturizers, will start out with the 900 employees transferring from the Osaka plant. Using two-armed and other advanced robots, the company seeks to raise output by 50% to 100 million units a year without expanding the workforce.

Shiseido now takes about a week to deliver items from a domestic plant to drugstores in Japan. By building a distribution facility at the Ibaraki site, the company aims to slash this to a day.

Cosmetics and other Japanese daily goods are gaining popularity overseas for their quality. Demand is growing strongly in Asia, where rising income levels are enabling more people to purchase Japanese products, often over the Internet.

source by nikkei
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