L'Oréal Inaugurates its Largest Factory in the World in Indonesia to Meet Fast-rising Demand in the South-East Asian Beauty

  L'Oréal Inaugurates its Largest Factory in the World in Indonesia to Meet
           Fast-rising Demand in the South-East Asian Beauty Market

  PR Newswire

  JABABEKA, Indonesia, November 7, 2012

JABABEKA, Indonesia, November 7, 2012 /PRNewswire/ --

    L'Oréal invests EUR 100 million in the first LEED certified factory in

L'Oréal announced today the opening of its largest factory in the world. The
66,000 m ^2 building is located at the Jababeka Industrial Estate, West Java,
Indonesia, around 60kilometerseast of Jakarta. With a staged investment
totalling EUR 100 million (approximately IDR 1.25 trillion), this new factory
will serve as the production hub for the South-East Asian region.

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 " As we have been successfully operating a factory In Indonesia since 1986,
the country is therefore the clear choice for L ' Oréal ' s ASEAN production
hub, " said Jean-Philippe Blanpain, L ' Oréal ' s Executive Vice-President of
Operations . " Building our largest factory in Indonesia once again
demonstrates our dedication  to providing Indonesians and the markets in the
ASEAN region products with superior quality and value . "

In line with the Group's ambition to reach one billion new consumers in the
next ten years, the factory will respond to increased market demand in
Indonesia and ASEAN, which represents new frontiers of growth for L'Oréal.

" With the highest growth of the Group in Asia Pacific, Indonesia is a key
contributor to the L ' Oré al  objective of reaching one billion new
consumers. The Jababeka plant reflects our confidence in the continuous
expansion of the Indonesian market and our strong commitment to the country, "
said Jochen Zaumseil, L ' Oréal ' s Executive Vice-President, Asia Pacific
Zone .

State-of-the-art facility dedicated to consumer products

L'Oréal's first factory in Indonesia was established in 1986 in the suburb of
Ciracas, Jakarta. Due to the tremendous growth experienced over the last 4
years, it was decided to build a new and larger facility, and to transfer all
the activities to the Jababeka plant.

Making a total of 43 L'Oréal factories worldwide, the new Jababeka plant will
manufacture hair and skin care products for the mass market brands, L'Oréal
Paris and Garnier. 30% of the production will cater to the domestic market
while 70% will be distributed to all other countries in the South-East Asian

In 2013, the plant will produce 200 million units and has an installed
capacity of 300 million units with the potential to reach up to 500 million
units per year. The plant features state-of-the-art facilities including
high-speed production lines, processing tanks with automatic recipes
management, a lighting system based on movement detection and an advanced
technology water treatment plant which is currently under development.

Commitment to sustainable development

The Jababeka plant is the first LEED certified factory in Indonesia and has
been built following LEED requirements. These consist of a US standard which
defines excellence in terms of design and building construction process with
regard to key aspects of sustainability including water and energy
efficiencies, atmosphere management, materials and resources utilization and
environmental quality.

Since 2005, L'Oréal Indonesia has reduced waste and water consumption per unit
by 52%, and CO ^2 emissions per unit by 38%. The goal is to decrease absolute
CO ^2 emissions by 50% from 2005 to 2015 (from 2,000 to 1,000 tons).

Contribution to the local people and economy

L'Oréal employs nearly 800 people in Indonesia with almost 450 of them working
at the new factory in Jababeka. Throughout the transfer process of the
factory, L'Oréal has succeeded in retaining 96% of its existing employees from
the former factory in Ciracas. In order to facilitate the move to the Jababeka
premises 40 km away, L'Oréal provided employees with transfer and housing
incentives. A total of 262 employees and their families have now become home
owners in the surrounding areas of the new factory.

In addition, the factory, which plans to expand according to market needs,
will use local materials and suppliers as much as possible.

Mohamad S. Hidayat, Minister of Industry of the Republic of Indonesia stated,
" The government of Indonesia appreciates the strategic decision taken by the
L ' Oréal Group in supporting the development of the industrial sector in
Indonesia, specifically the beauty industry, by opening their largest factory
in Indonesia. "

     For more information, please visit http://www.beauty-indonesia.com

About L'Oréal

L'Oréal, the world's leading beauty company, has catered to all forms of
beauty in the world for over 100 years and has built an unrivalled portfolio
of 27 international, diverse and complementary brands. With sales amounting to
20.3 billion euros in 2011, L'Oréal employs 68,900 people worldwide. Regarding
sustainable development, Corporate Knights, a Global Responsible Investment
Network, has selected L'Oréal for its 2012 ranking of the Global 100 Most
Sustainable Corporations in the World. L'Oréal has received this distinction
for the 5 ^th  consecutive year. http://www.loreal.com

About L'Or é al Indonesia

In Indonesia, L'Oréal has been present since 1979 and is now operating through
two entities: PT L'Oréal Indonesia, which handles marketing and distribution
activities, and PT Yasulor Indonesia, which focuses on manufacturing
operations. L'Oréal brands in Indonesia comprise of: L'Oréal Professionel;
Kerastase Paris; Matrix; L'Oréal Paris; Maybelline New York; Garnier; Lancôme;
Biotherm; Shu Uemura; Yves Saint Laurent; Kiehl's; perfumery which includes
Giorgio Armani, Ralph Lauren, and Diesel; and The Body Shop which is
distributed by a third party agent. http://www.loreal.co.id

  International Press Contact : Carolyn Giang + 33(0)1 - 47 - 56 - 8788 -

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