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Perfume giant Coty planning to axe 400 UK jobs in plant closure

(c) Sky News 2017: <a href="http://news.sky.com/story/perfume-giant-coty-planning-to-axe-400-uk-jobs-in-plant-closure-10801904">Perfume giant Coty planning to axe 400 UK jobs in plant closure</a>
 

Cosmetics and perfume giant Coty (Frankfurt: A1WY6X - news) has announced plans to close a UK factory affecting 400 jobs, months after it took over the plant from former owner Procter & Gamble (Swiss: PG-USD.SW - news) .

The site at Seaton Delaval in Northumberland is expected to shut by the end of next year.

It makes fragrances under the Boss, Lacoste, Gucci, Stella McCartney, Alexander McQueen and Escada brands.

The decision follows Coty's $12.5bn (£10.3bn) takeover of P&G's perfume, hair and make-up business which completed in October.

That deal united the US maker of Calvin Klein and Chloe perfume with P&G's Wella and Clairol hair brands.

Coty said the closure plans came after a "detailed study of our expanded global manufacturing capacities and capabilities… following the merger with P&G specialty beauty brands".

It said that as a result of the study it was proposing "to consolidate our fragrance operations into fewer core centres which will result in the proposed closure of the Seaton plant".

A spokesman said the decision did not have anything to do with Brexit.

Coty, whose brands include Max Factor and Rimmel cosmetics, enjoys revenues of around $9bn (£7.4bn).

It employs more than 20,000 people worldwide including 2,000 in Britain.

Coty followed its P&G merger with the £420m takeover of British hair products maker GHD.