THE WHAT? Coty has announced the planned closure of its manufacturing site in Cologne, Germany. The move was prompted by a wider consolidation of its global fragrance operations.
THE DETAILS The closure is expected to be completed by Summer 2022 and places some 300 jobs at risk.
Wolfgang Reissner, Coty VP Operations EMEA & General Manager HFC Prestige Manufacturing Cologne Germany GmbH, added, “We appreciate that this will be a very challenging time for our affected employees in Cologne. Our priority now is to work closely with employee representatives on a detailed timeline and process for the employees and the site closure.”THE WHY? Richard Jones, Chief Global Supply Chain and R&D Officer at Coty, explains, “We have taken this difficult decision to consolidate our fragrance manufacturing capacity in order to increase the efficiency of our operations. Coty is the world’s leader in fragrance, but our network has been operating over-capacity 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. 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.”