Source: Cosmetics in Russia 7/10/2006

Oriflame Builds New Moscow Plant

Oriflame cosmetics company schedules to complete the construction of an inhouse plant in Moscow region within this November. The plant will specialize in the lipstick manufacturing.

Sergei Kanashin, Deputy Director General of the division of the company in Russia comments on it: We will manufacture the lipstick at the plant and we in the short run we will focus solely on manufacturing this product.

The planned production capacity of the plant is 100 mln. pieces a year, the initial production volume is 20-30 mln. pieces a year. Having built the plant in Moscow we will cut down the logistics expenditures". Mr. Kanashin also stated that some share of the output scope will be supplied to other markets.

Oriflame started construction of the plant in Russia late in September, 2003. Apart from the manufacturing complex of 3 thousand square meters area a trade and service center and a storage terminal were erected on the site. The volume of investments is 35 mln. euros.

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