Pz Cussons Regulatory News (PZC)

13 Mar 2007 07:01

PZ CUSSONS PLC13 March 2007 PRESS RELEASE 13 March 2007 PZ CUSSONS PLC £26M INVESTMENT IN MANUFACTURING AND R&D CENTRE IN MANCHESTER PZ Cussons Plc (LSE: PZC.L) is pleased to announce that in response to the rapidgrowth of its UK business, it is investing £26 million in a new, purpose-builtInnovation Centre in Agecroft, Greater Manchester. The site has recently beenpurchased from the North West Development Agency, and construction is under way,with planned completion in 2009. The Innovation Centre will comprise: • a new high speed Liquids Factory, significantly increasing capacity for themanufacture of the Group's UK liquid product ranges. The new factory isexpected to produce around 150 million units per year, an increase of some 50%above current capacity levels; • a new Research & Development Centre, creating an international centre ofexcellence, with a 25-strong team of chemists working on site in a state of theart facility to create new formulations; • a new Fragrance Development Centre, which will create and producesophisticated perfumes for the UK business and the wider Group. PZ Cussons is number one in the personal wash category in the UK, with theImperial Leather, Carex and Original Source brands, and number two in thedesigner hair care category with the Charles Worthington brand. This investment recognises the continuing importance of the UK market, and re-affirms theGroup's commitment to developing leading brands and product ranges within themarket for which they are intended, to better meet consumer requirements and tastes. Alternative locations for the centre were considered, including Eastern Europeand the Far East. However locating the facility in Manchester allows PZ Cussonsto continue to provide reliability of supply chain and speed to market for its UK retail customers. Importantly, it also allows the Group to retain its highlyskilled workforce, as well as accessing the academic research of the localManchester universities. Furthermore, the facility will enable close involvementwith the UK sales and marketing team. As well as serving the UK, the R&Dcapability of the Innovation Centre will also be able to support the productdevelopment work of the wider PZ Cussons group. There will be approximately 150 people employed at the site, the vast majorityof whom will be transferred from the existing facilities in Kersal Vale,Stockport and Ellesmere Port which will be closed. No compulsory redundanciesare planned at these sites in relation to the move. Graham Calder, Deputy Chairman, said: "Having carried out a thorough analysis of all the options open to us, it isclear that further investment in our presence in the North West of England isthe right decision both for the business and for our customers. "The development of a UK centre of excellence reflects our strategy of buildingbusinesses in selected markets that have the ability to understand and respondto their particular needs. "Our UK business has been expanding rapidly and, in recent years, we have madegreat strides in product innovation for the UK market, with innovation in theImperial Leather range with Foamburst Shower, a complete overhaul of theOriginal Source Range and the recent launch of the Charles Worthington Men'sand Style.com ranges. This investment will provide the foundations for furtherlong term growth." -Ends-Enquiries: PZ Cussons Plc Tel: 0161 491 8000Graham Calder/ Brandon Leigh / Chris How Hogarth Partnership Limited Tel: 020 7357 9477John Olsen / Sarah MacLeod / Sarah Richardson This information is provided by RNS The company news service from the London Stock Exchange