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Feb. 4, 2019

Publisher: Shiseido

Management / Financial Result

Shiseido Establishes a New Factory in Kurume City, Fukuoka Prefecture

-Responding to Growing Demand and Further Business Expansion Inside and Outside Japan-

Shiseido Company, Limited (“Shiseido”) has decided to build a new production site, Shiseido Kyushu Fukuoka Factory (tentative name; hereinafter Kyushu Fukuoka Factory) in Kurume City, Fukuoka Prefecture, Japan. The new factory, which is slated to start its operation in fiscal 2021, will mainly manufacture skincare products for Japan and overseas markets. The investment is expected to be approximately 40-50 billion yen.

Background of production capability reinforcement.

Shiseido has been making concerted efforts as a whole toward the realization of even greater growth to accomplish the medium-to-long-term strategy VISION 2020 and to “Be a Global Winner with Our Heritage”.
As part of its production strategy, Shiseido is pursuing the establishment of a supply chain strategy from a global perspective in line with its Group-wide marketing strategy, and progressing in the creation of a flexible operational structure at each of its factories around the globe by taking into account various elements such as costs, lead time, inventories and procurement of raw materials. Amid such, the company has concluded that it is vital to establish a stable and sustainable production system from a medium-to-long-term perspective in order to respond to growing demand for cosmetics inside and outside Japan and secure further business growth in the future. To this end, Shiseido has decided to build another new factory following Nasu Factory and New Osaka Factory (tentative name) which are currently under construction. Investments in the production base including factories currently under construction, establishment of the new Kyushu Fukuoka Factory and reinforcement of existing factories are expected to exceed 170 billion yen.

Kyushu Fukuoka Factory

The new factory will focus on the production of skincare products which are growing in demand, and provide safe high-quality products in compliance with ISO 22716 international standards. As a next-generation factory, it will utilize cutting-edge facilities and advanced technologies such as IoT in the creation of innovation. Furthermore, through the inheritance of long-standing production technologies and expertise which are Shiseido’s strength, we will realize the new factory as people-friendly with high productivity. It will operate in an environmentally friendly manner while being able to support our business continuity plan (BCP), aiming to exist in harmony with the surrounding environment including mountains and rivers.

*The content of the release is correct as of the time of release, but please note that it may in some cases differ from the latest information.