L’Oréal to boost Mexico production with US$80M investment

L’Oréal confirms it will invest US$80 million to expand its manufacturing plant in San Luis Potosí, Mexico, aiming to increase its production capacity by 50%. The expansion will support the growing demand for hair care and hair color products across North America.

Construction is expected to be completed by 2025. The facility currently exports to more than 30 countries and operates within L’Oréal’s North American supply chain network.

“The Mexican market is really very attractive,” says Luis Miguel Moreno, the director of corporate affairs at L’Oréal Mexico. “We have been in Mexico for more than 63 years, and we believe we will continue to grow above the country’s economic growth.”

The company adds that the upgrade will include sustainable technologies and automation to improve efficiency and reduce environmental impact.

Boosting sustainable production

L’Oréal highlights that the expanded facility is expected to generate more than 1,000 direct and indirect jobs. The site, which has been operating since 2010, is one of the largest L’Oréal plants in Latin America.

L’Oréal reports that the San Luis Potosí site runs on 100% renewable electricity and uses recycled water systems. The new investment will also support the company’s broader sustainability goals and digital transformation plans.

Innova Market Insights’ data suggests a 21% rise in sustainable claims for beauty launches between July 2019 and June 2024. Europe led with 52% of launches, while face and body care products dominated the category, reflecting growing consumer demand for sustainable beauty solutions.

The announcement follows continued growth in beauty product consumption across the region, driven by both e-commerce and retail channels. L’Oréal has identified Mexico as a key production hub due to its geographic location, existing infrastructure, and skilled labor force.