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Avon Products, Inc. Announces New Distribution Center Location in Brazil

Avon selects Cabreúva, State of São Paulo, as site for new state-of-the-art distribution facility

Sep 19, 2008

São Paulo, Brazil, September 19, 2008 – Today, Avon Products Inc. announced that it has selected Cabreúva, State of São Paulo, as the location for its previously announced state-of-the-art distribution center to meet increasing demand in this key growth market. Avon said that it expects the new distribution center to open in 2010.  

Avon said that the new distribution center will feature advanced order-picking technology to help improve productivity and order accuracy, along with automated systems that will streamline workflows, resulting in cost efficiencies and improved service to Representatives. Avon expects to invest in excess of US$150 million in capital expenditures relating to the new distribution center.

The new 70,000 sq. mt. facility will be built upon a 267,000 sq. mt. property that can allow for future expansion. Construction is expected to begin in early 2009, with equipment installation expected to begin in the first quarter of 2010. The company said that it expects to start shipping orders in the second half of 2010.

When fully operational, the new facility will employ approximately 1,300 and have capacity to ship 70% of Brazil’s overall unit volume.  In line with this, as the company has said previously, it plans to phase-out its current distribution site in Osasco during 2011.

Cabreúva is a growing city of the State of São Paulo located one hour north from São Paulo city, capital of São Paulo State. The strategic criteria used in selecting the site included employment availability, logistics, and its proximity to four key cities (São Paulo, Campinas, Jundiaí and Sorocaba) as well as access to major highways.

"With 50 years of experience in Brazil, contributing to the empowerment and financial independence of more than 1 million independent Representatives, Avon is celebrating its presence in the country and reinforcing its confidence in its growth by investing in this new state-of-the-art facility.  This new distribution center will help to uphold increasing demand in this key market as well as offer even higher quality service in a very aggressive competitive environment,” said Luis Felipe Miranda, President of Avon Brazil.

Avon, the company for women, is a leading global beauty company, with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through over 5.5 million independent Avon Sales Representatives. Avon's product line includes beauty products, fashion jewelry and apparel, and features such well-recognized brand names as Avon Color, Anew, Skin-so-Soft, Advance Techniques, Avon Naturals, Mark. Learn more about Avon and its products at www.avoncompany.com.

 

 

 

For further information: Media: Sharon Samuel (212) 282-5322 Investors: Renee Johansen (212) 282-5320

 
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