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A-Brands

Beiersdorf To Invest €170m In New European Hub

By Dayeeta Das
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Beiersdorf To Invest €170m In New European Hub

Nivea-maker Beiersdorf has announced plans to invest €170 million in a new state-of-the-art hub for the European market in Leipzig.

It will invest an additional €220 million for a new production plant.

The hub will be located in the vicinity of the new production plant, allowing the company to address the future needs of consumers and customers.

Harald Emberger, senior corporate vice-president of supply chain at Beiersdorf, stated, "The interplay between production and hub offers unique development opportunities in this context to offer our customers completely new solutions.

"We would be delighted to be able to implement this project in the city of Leipzig – an attractive location with a skilled workforce and a good investment environment."

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'Largest Investment Worldwide'

The company described the move as its 'largest investment worldwide' at a single location.

Subject to the decision of Leipzig's city council, Beiersdorf plans to acquire a 12.5 hectares plot of land in the Leipzig-Seehausen II industrial estate for the project.

It intends to entrust specialist service providers with the operational side of the business.

The new hub will see the creation of around 400 additional jobs in Leipzig, over and above the initial 200 jobs in the production centre.

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"With the Beiersdorf Group, an important industry is locating to Leipzig, and this is a major new development opportunity for us," said Leipzig's Mayor, Burkhard Jung.

"We are thus positioning ourselves more broadly in Leipzig, and hundreds of new, skilled jobs are being created. The cosmetics industry in Germany has a turnover of around €8.8 billion - which puts Germany in second place in the EU, only behind France. With the new investment, one of the most important companies in this industry is setting up shop in Leipzig and making an economic promise for the future," Jung added.

Sustainability Agenda

Beiersdorf has set ambitious goals in its sustainability plan, CARE BEYOND SKIN.

The company is aiming for CO2-neutral operations and relevant sustainability certification for the new hub.

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It will ensure greenery in the facades and roofs, as well as the installation of photovoltaic modules on the new.

A significant proportion of goods transport from the facility will be handled by rail, the company added.

Recently, the company announced an investment in a start-up to launch a new personalised skin care brand, Routinely, with Belgian co-investor 9.5 Ventures.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more A-Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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