Los Angeles Daily News: Coty Moving OPI Nail Polish Manufacturing from North Hollywood to North Carolina

By Gregory J. Wilcox

Coty Inc., a global beauty products company, is moving its North Hollywood-based OPI Products Inc. nail polish operations to North Carolina, the company said Monday.

“Oh boy, that’s bad,” said Kenn Phillips, president of the Valley Economic Alliance, which focuses on business recruitment and retention.

OPI has manufactured and distributed a line of popular nail polishes and has been based at its North Hollywood complex at 13034 Saticoy St. since it was formed in 1981, a Coty spokeswoman said.

Manufacturing will now be done in Sanford, North Carolina, where Coty has its largest U.S. plant.

OPI’s commercial operations will remain in the area, the company said.

“Our ambitions for OPI’s sustainable growth and expansion require enhanced manufacturing facilities, and our Sanford plant is a best-in-class facility that will support OPI’s growth agenda, the company said in a statement. “We evaluated this decision carefully and plan to assist impacted employees during this process through outplacement and career services as well as severance benefits.”

The relocation to North Carolina will take place throughout this year, the company said, but the spokeswoman did not know how many workers in North Hollywood would lose jobs.

Calls to the North Hollywood facility were referred to Coty’s corporate office in New York.

The move was announced in North Carolina last week.

Gov. Pat McCrory, Commerce Secretary John E. Skvarla III and the Economic Development Partnership of N.C. announced on Jan. 21 that Coty will expand its manufacturing facility in Lee County and invest about $19 million at the site during the next three years.

“Manufacturing is a key component of the Carolina Comeback,” said McCrory in a statement. “Coty is the latest major global company to announce plans to expand its manufacturing operations here in North Carolina.”

The company will be adding 25 positions at the facility. Coty has 750 employees in North Carolina the county and several hundred contractors, the state said.

“The average annual payroll of the new jobs will be approximately $1.1 million.” the state said.

Enric Prat Codina, Sanford Plant General Manager, Coty, said in a statement that, “Coty is pleased to be able to expand our … plant and bring new jobs to the state. We have had a strong presence in North Carolina for 45 years.”

Phillips noted that the San Fernando Valley has a thriving sector and while OPI’s North Hollywood facility, if is vacated, would need upgrading it could be an attractive option for another company.

Much of the work involves adding compounds like color to base products that are made offshore, he said.

That part of North Hollywood is zoned for industrial uses.

“This space is unique. There are only a few places left where you can use solvents and other types of materials. It is already approved for this,” Phillips said. “This would be an asset for these kinds of companies. It’s a pretty big space but they would have to invest in (the manufacturing line) and automate it.”

Coty purchased OPI in 2010. Terms were not disclosed but the Bloomberg Business reported at the time two sources put the price at $1 billion cash.

Source: Los Angeles Daily News