Shiseido goes back to its roots with first Japanese plant since 1980s

By Simon Pitman

- Last updated on GMT

Shiseido goes back to its roots with first Japanese plant since 1980s
 With a new facility in the Osaka prefecture, Shiseido is set to launch its first Japanese plant in several decades, marking a new point in the company's investment and expansion plans.

Shiseido has high hopes for the new Kansai-based plant, with the beauty brand reportedly keen to see a 50% increase in output while simultaneously maintaining a drop in production costs, according to a recent report​ by business news outlet, Bloomberg.

Shiseido reportedly intends to achieve this dramatic hike in productivity and efficiency through increased automation across its production line, reducing the need for more costly manual labour.

Despite this drive to an increased reliance on a robotic production line, Shiseido does not intend to make any of its current Osaka facility’s workforce redundant, with all 900 set to transfer across once the planned factory has opened for business.

The Japanese cosmetics manufacturer is set to commence production from the site in 2020, and construction is expected to begin by 2018.

Vision 2020

In a statement released with the announcement of the new plant, Shiseido explained that by “increasing brand value​”, the launch will help the company achieve its medium-to-long-term strategy, known as Vision 2020.

Vision 2020 will see Shiseido aiming to reorganise its business structure, looking to “build a strong foundation, from which stable corporate systems that can sustain for 100 years or more will be derived​,” according to the brand.

The projected 50% increase in efficiency at the new Osaka plant will reportedly allow the brand to up production output to 100 million units a year, without having to expand the workforce,  and a new distribution facility at Ibaraki, which will slash delivery times for the company from about a week to just a day.

 

The new Osaka plant joins other planned ventures by the brand which are intended to help it reach its strategic vision, including the construction of the brand’s previously announced new basic research base, the ‘Global Innovation Centre’.

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