PZ CUSSONS PLC
13 March 2007
PRESS RELEASE 13 March 2007
PZ CUSSONS PLC
£26M INVESTMENT IN MANUFACTURING AND R&D CENTRE IN MANCHESTER
PZ Cussons Plc (LSE: PZC.L) is pleased to announce that in response to the rapid
growth of its UK business, it is investing £26 million in a new, purpose-built
Innovation Centre in Agecroft, Greater Manchester. The site has recently been
purchased from the North West Development Agency, and construction is under way,
with planned completion in 2009.
The Innovation Centre will comprise:
• a new high speed Liquids Factory, significantly increasing capacity for the
manufacture of the Group's UK liquid product ranges. The new factory is
expected to produce around 150 million units per year, an increase of some 50%
above current capacity levels;
• a new Research & Development Centre, creating an international centre of
excellence, with a 25-strong team of chemists working on site in a state of the
art facility to create new formulations;
• a new Fragrance Development Centre, which will create and produce
sophisticated perfumes for the UK business and the wider Group.
PZ Cussons is number one in the personal wash category in the UK, with the
Imperial Leather, Carex and Original Source brands, and number two in the
designer hair care category with the Charles Worthington brand. This investment
recognises the continuing importance of the UK market, and re-affirms the
Group's commitment to developing leading brands and product ranges within the
market for which they are intended, to better meet consumer requirements and
tastes.
Alternative locations for the centre were considered, including Eastern Europe
and the Far East. However locating the facility in Manchester allows PZ Cussons
to continue to provide reliability of supply chain and speed to market for its
UK retail customers. Importantly, it also allows the Group to retain its highly
skilled workforce, as well as accessing the academic research of the local
Manchester universities. Furthermore, the facility will enable close involvement
with the UK sales and marketing team. As well as serving the UK, the R&D
capability of the Innovation Centre will also be able to support the product
development work of the wider PZ Cussons group.
There will be approximately 150 people employed at the site, the vast majority
of whom will be transferred from the existing facilities in Kersal Vale,
Stockport and Ellesmere Port which will be closed. No compulsory redundancies
are planned at these sites in relation to the move.
Graham Calder, Deputy Chairman, said:
'Having carried out a thorough analysis of all the options open to us, it is
clear that further investment in our presence in the North West of England is
the right decision both for the business and for our customers.
'The development of a UK centre of excellence reflects our strategy of building
businesses in selected markets that have the ability to understand and respond
to their particular needs.
'Our UK business has been expanding rapidly and, in recent years, we have made
great strides in product innovation for the UK market, with innovation in the
Imperial Leather range with Foamburst Shower, a complete overhaul of the
Original Source Range and the recent launch of the Charles Worthington Men's
and Style.com ranges. This investment will provide the foundations for further
long term growth.'
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Enquiries:
PZ Cussons Plc Tel: 0161 491 8000
Graham Calder/ Brandon Leigh / Chris How
Hogarth Partnership Limited Tel: 020 7357 9477
John Olsen / Sarah MacLeod / Sarah Richardson
This information is provided by RNS
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