UPDATE 1-Coty to shut German fragrance factory, consolidate operations
(Adds restructuring plan details)
Jan 27 (Reuters) - Coty Inc said on Wednesday it would close its manufacturing site in Cologne, Germany as a part of the cosmetics and makeup company's efforts to consolidate its fragrance operations.
The company last year announced a plan to cut costs, improve supply chain and reduce debt, which came as the COVID-19 pandemic kept salons and department stores, where its products are sold, shut.
"Our network has been operating over-capacity in recent years and the considerable impact of COVID-19 has accelerated the need to take action," said Richard Jones, global chief supply officer.
The changes are expected to bring annual net savings for Coty.
The closure of the Cologne site, which employs about 300 people, will occur in stages and is expected to be completed by summer 2022. (Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel)
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