L’Oréal invests USD 60M in French plant to meet demand for Luxe perfumes

FRANCE – L’Oréal is set to invest €60 million ( USD 64.8 million) into its Gauchy facility in France to double its luxury fragrance production capacity. 

This investment will expand the plant’s output to 200 million perfume bottles annually, addressing the strong global demand for perfumes. 

The Gauchy factory specializes in manufacturing perfumes for L’Oréal’s Luxe Division, including top brands such as Lancôme, Saint Laurent, Armani, and Valentino, as well as Prada and, from 2026, Miu Miu. 

The increased production capacity also supports L’Oréal’s recent acquisition of Kering’s beauty division, which adds luxury perfume brands like Gucci and Balenciaga to its portfolio.

Nicolas Hieronimus, CEO of L’Oréal, “France is the beating heart of L’Oréal, a breeding ground for innovation, expertise, and talent that has shaped our group since its inception,”

“The €500 million invested in France over the past three years is concrete proof of this. It demonstrates that a cutting-edge industry can not only thrive in France, but also shine throughout the world, provided that competitive pressures do not hinder this ambitious long-term vision.”

Over the past three years, L’Oréal has invested about €500 million(USD 540 million) in France, focusing on industrial growth, research, and innovation. 

The Gauchy plant is an integral part of this investment, emphasizing France as a central hub for L’Oréal’s innovative and sustainable manufacturing efforts. 

It operates entirely on renewable energy and partners with local organizations and education institutions, employing over 230 people with plans to add around 30 more jobs due to this expansion. 

This investment highlights L’Oréal’s commitment to maintaining a competitive and cutting-edge fragrance industry in France while meeting growing consumer demand worldwide.

The move reflects L’Oréal CEO Nicolas Hieronimus’s view of France as the heart of the company, a place fostering innovation, talent, and expertise crucial to L’Oréal’s global success. 

The expansion aims to sustain a high-tech perfume industry that can thrive internationally, empowering L’Oréal to maintain and grow its luxury fragrance market leadership without compromising its long-term vision in a competitive global market. 

The Gauchy facility’s growth also aligns strategically with rising U.S. prestige perfume sales, a major market for its exports, where demand surged by 6% in the first half of 2025.

This move comes after L’Oréal announced plans to invest over USD 80 million in Mexico by 2026 to expand its production capacity. 

According to L’Oréal, this investment will focus on expanding production lines at its plants located in San Luis Potosí and Mexico City. 

The expansion aims to support the growing demand for L’Oréal’s products in the region and strengthen its manufacturing capabilities in the Mexican market.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.