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    Breaking News

    Coty to Shut Down Manufacturing Site in Cologne, Germany

    Announces plans to consolidate global fragrance operations.

    Coty to Shut Down Manufacturing Site in Cologne, Germany
    This move is a part of Coty’s wide-ranging strategy to return the company to profitable growth, reduce net debt, streamline operations and address long-term financial challenges.
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    Charles Sternberg, Assistant Editor01.27.21
    Coty Inc. has announced plans to close its manufacturing site in Cologne, Germany. The move comes as Coty consolidates global fragrance operations.
     
    The Cologne site currently employs approximately 300 people and produces a range of fragrance products. The closure, which will occur in stages, will be preceded by the completion of all appropriate legal processes and is expected to be completed by Summer 2022.
     
    “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 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.”
     
    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.”
     
    Coty will adapt its other fragrance manufacturing sites as part of its evolving operational approach. In addition to addressing overcapacity, the changes are expected to deliver annual net savings for the company.
     
    This move is a part of Coty’s wide-ranging strategy to return the company to profitable growth, reduce net debt, streamline operations and address long-term financial challenges, which it announced last year.
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