Hermes Opens Two New Plants In France To Expand Production Capacity

French luxury brand Hermès is working to build a new factory to expand production, but the location is still only in France. On Tuesday, the company said it would open two leather goods manufacturing factories in eastern France, which would create 400 jobs for the local area.

 Hermès opens two new plants in France to expand production capacity

 Sales are rising steadily, and finally it is necessary to expand production capacity in order to improve the long-term shortage of supplies. According to data released by Hermès in the first quarter of 2013, except for leather goods, horses, watches and tableware, sales of all product categories of Hermès achieved strong double-digit growth. Calculated at a constant exchange rate, Hermès revenues increased by 12.8% to 856.8 million euros from 776.9 million euros in the same period of 2012, an increase of 11% higher than market participants expected. The company’s retail channel sales increased by 13.6%, and the wholesale channel sales increased by 9.9%.

 And Hermes ‘dazzling performance dwarfs the luxury empire LVMH Group, which may be one of the reasons why LVMH has racked its brains to acquire Hermes’ equity.

 BNP Paribas analyst Luca Solca said, ‘Hermes’s good performance indicates that it restricts Hermès’ own manufacturing capacity.’

 Therefore, for the purpose of expanding production capacity and enhancing its own competitiveness, the Hermès new plant plan is a natural success.

 The new factory locations selected by Hermès this time are Héricourt and Montbéliart, respectively. The new factory will be completed and put into operation in 2015 or 2016.

 Both factories are located within 20 kilometers of Hermès’ existing factory in Seloncourt and will focus on manufacturing leather products. In Hermes leather goods factory, a product from the model to the final finished product is completed by only one craftsman, which is a tradition that Hermès has continued for many years. Each craftsman has his own set of tools that he never shares with other craftsmen and carries with him until they retire.