renowned cosmetics and hair care products manufacturer.
During a recent NJBIA site visit, Geoffrey J. Ladue,
vice president for manufacturing operations, showed
Assemblywoman Linda Stender how they keep their competitive
edge.
The Clark facility was the first L’Oreal plant
established in the US, but as the company’s
American presence grew, it expanded in other areas
of the State and the nation because there was no room
for expansion at Clark.
"Fifty years ago, we made everything in Clark—hair
care products, nail enamel, cosmetics," said
Ladue, "but as the company grew, that was no
longer feasible."
Today, L’Oreal has four manufacturing facilities
in New Jersey, with L’Oreal plants located in
West Caldwell, Piscataway and Somerset and facilities
throughout the nation. These days, the Clark facility
specializes in hair coloring kits, non-aerosol hair
sprays and hair styling gels.
Locally, the economic benefits are phenomenal. The
union-represented workforce earns very competitive
wages when compared to other companies in the area.
Workers also receive a full benefits package. Ladue
said L’Oreal’s employee turnover rate
of less than 2 percent annually can be attributed
to the good working relationship between the union
and the company.
"We have to be smart about our use of labor
in New Jersey if we are going to survive," Ladue
said. "(The employees) understand this."
L’Oreal is still bringing in new jobs, Ladue
said, describing the company as being "always
in hiring mode." Just recently, the Clark plant
added 15 new line operators and recruited six new
engineers from New Jersey colleges. The company also
supports about ten internships a year and typically
offers about half of the interns full-time jobs when
they graduate.
Economic benefits do not stop at L’Oreal’s
door. Like many manufacturing operations, the Clark
facility supports surrounding businesses and jobs.
Ladue explained that L’Oreal purchases all
packaging materials—the tubes, bottles, and
containers as well as the boxes in which they are
sold—from area companies. The Clark facility
simply does not have the room to make its own packages
or keep a large inventory, so packaging is delivered
every day, Ladue said.
L’Oreal’s manufacturing process is all
about precision and efficiency.
Making hair dyes, gels and other products is similar
to following a recipe for baking a cake. When the
raw materials are brought in, they are tested by L’Oreal’s
on-site lab to ensure they meet company standards.
Workers then measure out the ingredients to the precise
weights that will be needed for each formula and repackage
them. Each package is given a bar code. The pre-weighed
packages for one particular "recipe" are
delivered to kettles.
Products are made in batches measured in thousands
of kilograms. Technicians scan the bar codes of the
pre-weighed ingredients to make sure they are the
right ones for the recipe, and then add them to the
kettle when prompted by the computer.
Pointing to one hair-dye kettle, Ladue explained
that just one batch would make enough dye for 35,000
kits.
The product is pumped from the kettles into mobile
tanks on the first floor, which are then hooked up
to assembly lines for packaging. Precision machines
operated by technicians fill bottles, screw on caps,
crimp tubes, and assemble the kits automatically.
Over the years, L’Oreal has added newer and
better machines. "As the formulas get more sophisticated,
the equipment needs to be more sophisticated,"
Ladue said.