Eurofragance selected Singapore as its chosen location for a new fragrance facility and has invested a total of €2 mn into the build.
The company, which is based in Barcelona, Spain, aims to improve and expand production at the plant to maximise strategic and high growth opportunities in the region.
With a production capacity of 3000 tonnes per year, Eurofragance hopes the Singapore-based plant will enhance delivery time and improve production flexibility. The newly-opened plant is expected to have 18 employees by the end of 2017.
Eyes on Asia
Ahead of the facility launch, Eurofragrance announced it had opened a creative centre in Singapore in June 2016. The move suggested that Eurofragrance had marked Asia as a key market for fragrance design and application.
Eurofragance now has four creative centres located in Singapore, Barcelona, Mexico and Dubai, along with exclusive distribution agreements in the Philippines.
While the creative centres have been strategically situated and launched to aid the R&D of innovative fragrances, the plants will strive to maximise logistics and production capabilities.
As the company strives towards achieving €77 mn by the end of 2017 and €100 mn by 2018, Asia is proving a vital component in realising this strategic objective.
When it starts operating, the Singapore production plant will be one of three facilities; the other two located in Barcelona and Mexico.
The launch of two creative centres in Singapore and Dubai, along with the automation and improvement to processes and systems in its production facilities, totalled €4.6 mn in investment spend in 2015.
Eurofragance has maintained a growth of more than 10% in recent years and has a turnover of €63.1 million.
In Singapore, the fragrance industry is being led by consumer demands for luxury.
Euromonitor International reports that as the country’s shoppers are willing to spend more on fragrances, their expectations for product efficacy and high-quality packaging - both of which, are associated with premiumisation and higher price points - is driving the industry.