The MOU will see the cosmetics giant acquire a 28,000m2 surface area of land on Bom Jesus Island in an area adjacent to the Federal University of Rio de Janeiro Technology Park.
Following an investment of approximately €30m/ $39.2m/ R$70m, L’Oréal also vowed to create 150 direct jobs by 2015, adding to the 2,100 already employed at its Brazil operation.
High growth market
The cosmetics firm expects the laboratory to accelerate the growth of innovative products tailored for the Brazilian and Latin American markets that may potentially be marketed in other locations around the world.
According to the company, Brazil is a very high growth market and promises to be an amazing growth opportunity for L’Oréal.
"The move to build a laboratory in Brazil is in line with L’Oréal’s globalization strategy of meeting every beauty inspiration by providing the most local innovations for consumers and adapting to each culture’s specific needs," says Didier Tisserand, managing director of L’Oréal Brazil.
Rio to feel the benefits
The deal also symbolizes further development in Rio’s socio-economic and environmental road to progress, primarily in hiring local specialized talent and scientific partnerships with the Federal University.
"This is a new step towards innovation and technological development. I am very honored that a large group like L’Oréal has chosen to develop its activities in Rio. I am confident that this investment will allow us to respond even better to the expectations of Brazilian women by offering them specific, high quality products," declared Sergio Cabral, the Governor of Rio de Janeiro.
The L’Oréal Group has had operations in Brazil for 50 years with two plants in Rio and São Paulo, one Distribution Center in Rio, as well as four training institutes for hair styling and nail care.