Company explains the plan to supply European stores from Dusseldorf is not new
Lush has confirmed that it is not moving production of its cosmetics to Germany as a direct result of Brexit.
Despite numerous media reports suggesting otherwise, the Poole-based company has stated that it has long been the plan to start supplying European stores from its 75,000sqft facility in Dusseldorf.
Lush signed a lease on its new factory in November 2015, with an early plan in place to prepare the site to begin production in June 2016. The UK’s vote to leave the EU was announced on 24 June.
The cosmetics manufacturer and retailer explained that, as previously planned, a team will be active at the facility responsible for supplying Germany, France, Belgium, Holland, Luxembourg and Sweden this year. Finland, Norway and Switzerland will then be supplied from this factory from 2017.
In a statement shared with Cosmetics Business, the company noted: “We do not intend to reduce our Poole factory base and there are no redundancies or job reductions planned or anticipated.”
It continued: “Prior to the Brexit vote we were planning for a 19% lift in our global production this year, a target we will keep but which will now be in constant review. Hiring for our usual busy Christmas factory production remains as planned and starts in the next few weeks, with the usual adverts being placed locally.”
In the Dorset town, where Lush is headquartered, 58% of voters opted to leave the EU. Lush employs roughly 1,400 people in Poole and 4,057 in the UK. Approximately one third of those employed in Poole and 20% of its UK employees (782) are not British citizens.
“All our factory workforce, whether local born and bred or those from overseas, are a valued part of the Lush family and protecting their jobs, interests and family life is a high priority when we are making business decisions and reacting to the changes in the economic landscape.”
Lush added: “As the uncertainties brought about by the Brexit vote unfold, we will need to react and adapt to keep our business profitable in order to protect the jobs of those who currently work with us.”
The company, which has been trading for 21 years, was keen to emphasise that it holds its British roots in high regard: “No matter what uncertain future awaits, we will remain a proud British business, with a global clientele and an international outlook.”
Immediately following the EU referendum in the UK, Co-founder Mark Constantine expressed “grave concern” and a “sense of sadness at the loss of opportunity” in an interview with Cosmetics Business. To read the interview, click here.