Givaudan will invest USD 110 million in a new fragrance compounding facility in Mexico to boost regional growth and sustainability.
Givaudan, the world’s leading company in the Fragrance & Beauty sector, has unveiled plans to invest USD 110 million in the construction of a new fragrance compounding facility in Pedro Escobedo, Mexico. This major capital commitment represents a strategic step in strengthening the company’s manufacturing presence in Latin America and aligns closely with Givaudan’s long-term 2030 growth strategy, which focuses on sustainable value creation, operational excellence, and closer proximity to customers.
The new facility is designed to support Givaudan’s “in the region, for the region” supply model, a cornerstone of its global operations strategy. By locating production closer to its customers across Mexico and the broader Latin American market, Givaudan aims to significantly enhance responsiveness, reduce delivery lead times, and minimize logistics-related costs. In addition, the localized manufacturing approach will contribute to lower transport-related emissions, reinforcing the company’s commitment to environmental responsibility and sustainable operations.
Once fully operational, the Pedro Escobedo fragrances compounding plant will have an initial scalable capacity of approximately 20,000 to 25,000 tonnes, with the flexibility to expand further in response to evolving customer demand. The facility is expected to begin operations in 2029 and will play a central role in serving key markets including Mexico, Central America, the Caribbean, and the Andean region. These markets continue to show robust growth momentum, driven by rising consumer demand for fragrances across fine fragrances, personal care, and household applications.
Maurizio Volpi, President of Givaudan Fragrance & Beauty, emphasized the strategic importance of the investment, highlighting Latin America as a region with sustained growth potential. He noted that the new facility represents a strong commitment to Givaudan’s customers across the region, enabling the company to deliver faster, more agile, and more flexible service. By enhancing local and regional manufacturing capabilities, Givaudan aims to better support its local and regional (L&R) growth ambitions while responding more effectively to customer needs.
From an operational perspective, the Pedro Escobedo facility has been designed with a strong focus on automation, scalability, and efficiency. According to Andy Stedman, Global Head of Operations for Givaudan Fragrance & Beauty, the new site will significantly reinforce the company’s supply chain infrastructure in Latin America. Advanced production technologies and optimized workflows will allow Givaudan to streamline manufacturing processes, improve productivity, and reduce its overall environmental footprint, consistent with the company’s sustainability objectives.
This latest announcement also builds on Givaudan’s previous investment initiatives in Mexico. In 2024, the company revealed plans to expand Fragrance & Beauty production capacity at the Pedro Escobedo site specifically for encapsulation technologies. The addition of the new compounding facility further elevates the strategic importance of the location within Givaudan’s global manufacturing network, positioning it as a key hub for innovation, production, and regional supply.
Overall, the USD 110 million investment underscores Givaudan’s confidence in the long-term growth prospects of Latin America and its commitment to delivering customer-centric, sustainable, and efficient fragrance solutions through localized manufacturing capabilities.
