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Beiersdorf Starts Up New Production in Mexico

Posted: July 21, 2014

On July 18, 2014, with 700 guests and in the presence of Germany’s foreign minister Dr. Frank-Walter Steinmeier, Beiersdorf opened a state-of-the-art production center with an integrated research and development center in Silao, Mexico. The new location makes it possible to significantly increase the development and production capacity for the growing markets of North and Central America. At the same time, with the new building, the beauty company emphasizes its clear commitment to ecologically responsible activity. With the focus on energy efficiency and resource conservation, the newest findings and environmentally friendly technology were part of the process going back to the planning phase.

“The investment in Mexico is an answer to the increasing demand in the North and Central American regions. Our production capacity and our ability to supply will dramatically improve. Furthermore, the close collaboration with the integrated innovation center will guarantee that we develop specific products for the Latin American markets and optimally serve regional consumer needs,” says Dr. Ulrich Schmidt, board member for finance, supply chain and Latin America at Beiersdorf.

The plant in Silao will primarily produce creams, lotions, shower products and lip care from the Nivea, Eucerin and Labello brands for sales in Mexico, Central and North America. In order to boost regional innovation, the building complex also has its own innovation center, in which 20 researchers develop products for local consumer needs on-site.

After a construction time of less than two years, the new plant, located about 350 kilometers northwest of Mexico City in the state of Guanajuato, began operation on time. With a production volume of about 280 million cosmetic products and 45,000 tons of product annually, the new factory is the second largest within the global Beiersdorf production network after Hamburg. The number of employees will increase from today’s 350 to about 600 by the end of the year.

All the guests in attendance were happy to receive a special edition Nivea Body Lotion designed for the opening. The relationship between Beiersdorf and Mexico has a long history. More than 100 years ago, Beiersdorf shipped its first products into the country, and shortly after its invention in 1911, the classic Nivea Crème was also available in Mexico. After the Second World War, Beiersdorf de Mexico S.A. was the first affiliate that the company founded outside of Europe to sell its products. For this reason, many Mexicans think of Nivea as a local brand. The 98% brand recognition of Beiersdorf’s flagship is as high as in Germany.