Shiseido : Establishes New Supply Chain Base in Ibaraki City, Osaka

(1) Manufacturing factory for prestige skincare products
The Osaka Ibaraki Factory will manufacture prestige skincare products including the serum ULTIMUNE from the brand SHISEIDO, which is sold in 88 countries and regions, and the global luxury brand Clé de Peau Beauté. Aiming to 'Be a Global Winner with Our Heritage', the factory will boost its production capacity to approximately 160 million units from 2023 to meet future demand.

(2) Environmentally sustainable factory
The factory has an environmentally friendly building structure and has received an A rank from CASBEE (Comprehensive Assessment System for Built Environment Efficiency), which is highly regarded for factory buildings. The use of sandwich panels for the exterior walls, which are lightweight and have excellent heat insulation properties, increases the heat insulation performance of the building and realizes a reduction of approximately 30% in the energy (CO2) used to operate the factory and distribution center. In addition, the reuse of circulated water for cooling water used in manufacturing reduces 65,000 tons of water consumed per year. Since the factory and distribution center are located next to each other, we expect to reduce CO2 emissions during product transportation by more than 60 tons per year. Through these efforts, we will continue to work to reduce our environmental impact.

(3) 'PEOPLE FIRST' workplace environment
Under our PEOPLE FIRST policy, we are actively investing in talent development, as we value people as the most important asset for the company and aim to create an organization in which 'strong individuals create a strong company'. We believe that it is people who support delivering high quality service even in the supply network, so we create an environment where people can work comfortably. As part of our efforts, we have promoted various initiatives such as reforming the workplace from the perspective of females, who account for more than 60% of our employees, introducing a free-address workplace based on the ABW (Activity Based Working) concept, which allows the staff members to freely choose their working space and style, etc. Furthermore, a large open-plan space that covers all office departments will encourage active cross-functional interactions and maximize operational efficiency and create new value. Meanwhile, the cafeteria, which is used by all staff members, has an open circular atrium with natural light coming in from the windows, and serves as a symbol of this base. At the production site, we have introduced a state-of-the-art IoT system that automates the process of 'loading materials' including bulk materials in the filling and finishing area, which results in reducing the workload and creating a comfortable working environment for the staff members.

(4) Together with local communities
As a new resident of Ibaraki City, we will place importance on continuous efforts to build relationships of trust with local communities, and as a factory open to the public, we will aim for co-existence and co-prosperity with the local communities with a wish to be a place for communication activities with private sectors, government offices, schools, and other organizations. In addition, the factory will be also positioned as a base for communicating the brand value and our commitment to quality to people around the world and increasing the number of loyal Shiseido users. To this end, we will open SHISEIDO BEAUTY SITE to offer factory tours to the public starting in 2022.