Shiseido Plans to Build New Factory in Tochigi Prefecture to Responding to Growing Demand Inside and Outside Japan
Shiseido Establishes a New Factory in Ohtawara City, Tochigi Prefecture
Date: Oct 19, 2017
Source: Shiseido Company, Limited
Shiseido Company, Limited (Shiseido) has decided to acquire a plot of land in Ohtawara City, Tochigi Prefecture with the intent of building a new production site, Shiseido Nasu Factory (tentative name; hereinafter Nasu factory). Shiseido is planning to begin construction of the new factory in the fiscal year 2018 and start its operation in the fiscal year 2019. The new factory will mainly manufacture skincare products.
In addition to that, Shiseido will boost the production capabilities of its new Shiseido Osaka Factory (Ibaraki City, Osaka Prefecture), which is now in the preparation phase of construction and will manufacture skincare products targeting the Japanese and global markets, to 2.1 times higher than the initial plan. The company is also promoting cooperation with suppliers to ensure a stable supply of necessary raw and packaging materials. Through these initiatives, Shiseido aims to establish a stable and sustainable production system in the mid- to long-term.
Meanwhile, in order to quickly respond to expanding demand in Japan and overseas, Shiseido will take measures to enhance production capabilities of the three existing factories in Japan, such as improving their production infrastructure and increasing the number of staff, while also making an effective use of outsourced production, efficient manufacturing of flagship products, and other initiatives.
Background of production capability reinforcement
Shiseido has put efforts into strengthening its competitiveness through innovative changes in the management to accomplish the company’s mid- to long-term business strategy VISION 2020, with which the company aims to “Be a Global Winner with Our Heritage”. As a result, the demand for Shiseido products has been increasing not only in its home market, Japan, but in the global markets as well. On top of that, the company has been actively promoting its cross-border marketing strategy, which regards the three markets of Japan, China and Travel Retail as one, and consequently, the demand for Shiseido products is expanding inside and outside Japan thanks to the increasing number of consumers who perceive the value of “made-in-Japan” quality. In order to respond to such increase in cosmetics demand and achieve further growth of the company, Shiseido recognizes the importance of establishing a stable production system from a mid- to long-term perspective, and decided to increase investment into various initiatives, building a new factory among them.
Establishment of Nasu factory
The new factory will play the role of a primary factory focusing on skincare products, which are growing in demand, and provide safe high-quality products. Shiseido will ensure strict production and quality control in compliance with the international standards, ISO 22716. While utilizing the advanced technologies, such as IoT and others, and establishing effective production and distribution from the viewpoints of cooperation with suppliers and creating a stable distribution system, the factory will promptly respond to the fast-changing market needs. In addition, Shiseido commits to zero impact on the water resources in the factory neighborhood and existing in harmony with the surrounding environment.
Outline of Nasu Factory
Name：Shiseido Nasu Factory (Tentative name)
Planned construction site：Nakatawara area in Ohtawara City, Tochigi Prefecture
Land area：110,000 m2
Building area：38,000 m2
Floors Single story (partially multi-storied)
Products：Skincare and other products
Production capacity：Approx. 120 million products per year
Investment：Approx. 30-40 billion JPY
Start of construction (plan)： FY2018
Start of operation (plan)：FY2019
*The above information may be subject to change.