Schwan Cosmetics relocates manufacturing from New Jersey to Tennessee

By Simon Pitman

- Last updated on GMT

Schwan Cosmetics relocates manufacturing from New Jersey to Tennessee

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Schwan Cosmetics has announced that it is relocating two of its smaller facilities in Piscataway, New Jersey to Tennessee as it tries to consolidate and achieve greater synergies.

Swchan Cosmetics is a full service private label supplier, specializing in the manufacture of a range of color cosmetics products, including eyeliners, lipsticks, mascaras and eyeshadows.

According to an official New Jersey Department of Labor and Workforce Development WARN notice, the closure of the facilities will result in the loss of 111 jobs for the Garden State.

Staff head south too

The two facilities are located at industrial sites close to one another, and approximately 28% of the existing staff had opted to re-located to Tennessee, to take up positions at the new facility.

The relocation will be effective from April 24th​, at which time the workers that are moving are said to have been incentivized and compensated by the company to make the move.

“Both our New Jersey and Tennessee manufacturing facilities will be consolidated into this 173,000-square-foot high-tech site,”​ said Barbara Bauer-Kropf, Schwan’s executive vice president of sales, in an official announcement about the move.

“The new Schwan Cosmetics USA will be a full-service private-label supplier continuing to build on Schwan Cosmetics’ heritage of developing and introducing innovative, market-driven color cosmetics.”

Announced TN relocation last year

 The company announced it was moving its USA headquarters from New Jersey to Murfreesboro, Tennessee, back in February 2014 in order to take advantage of a higher quality of life and a more skilled work force.

The company invested $38m in the new facility and headquarters, which was is set to open in Spring of this year. The location is expected to create 250 new jobs, with an additional 200 being transferred from Schwan’s existing facility in Lewisburg, Tenn.

The planning permission for the new development is approved for a 171,364 square-foot facility, with the headquarters being set on a 25 acres site.

The company’s manufacturing model involves heavy quality control, meaning that a strong workforce is an important element to maintain standards. It has around 4,400 employees worldwide, with corporate headquarters based in Germany.

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