Shiseido nears completion of expanded plant

By: Dick Brinster
   EAST WINDSOR — Shiseido America, the domestic arm of the world’s oldest and fourth-largest cosmetics manufacturer, expects to complete a $9 million expansion of its township facility this fall.
   The 53,000 square feet addition, expected to be done in November, will bring the size of the local plant to 215,000 square feet, according to Tom Halligan, executive director of operations for Shiseido America.
   With the expansion, the work force of the township’s third-largest employer will increase by about 10 percent, Mr. Halligan said last week.
   "We’ll be bring in 20 to 25 additional workers in warehousing, manufacturing and production," he said. "We’ve grown from a small workforce to what now is close to 225 employees on-site."
   They’re part of a global workforce of 26,000 at 20 Shiseido International facilities. The company, which Mr. Halligan says does $6.5 billion in annual sales, has subsidiaries in 60 countries. Among them is Davlyn Industries in Monroe.
   Tokyo-based Shiseido International markets its products in 70 nations. Its wares are sold in 850 department and specialty stores throughout the United States.
   The current upgrade of its warehousing and manufacturing capability will enable the company to increase on-site manufacturing of its fragrance products, Mr. Halligan explained. The hottest item now for Shiseido is its Bio-Performance line.
   "It’s an exclusive proprietary formula developed through Shiseido R&D that maximizes skin balance, texture and performance," Mr. Halligan said.
   The expansion will add 5,000 pallet locations, for a total of 10,000. That’s a lot of inventory.
   "Close to 3,000 unique items are produced out of this factory," Mr. Halligan explained. "Close to 60 to 65 percent of what we produce, we ship overseas to either Japan, Asia or Europe."
   The company’s literature describes Shiseido, founded in 1872 as a Western-style pharmacy, as high in Japanese tradition yet fiercely contemporary. It’s also bullish on East Windsor, and Mr. Halligan said he expects senior staff from Japan to attend a planned ribbon-cutting ceremony in November.
   "East Windsor was chosen because of its strategic location to the deep-water ports of New York, Philadelphia and Baltimore," he said. "A good percentage our components are received from overseas vendors, glass from France, and components from China and Japan, and then we’ll produce and manufacture the cosmetic goods in this facility."
   He also is complimentary of the municipal government’s approach toward industry.
   "The mayor in particular is a strong proponent for the growth our company," Mr. Halligan said, alluding to Janice Mironov. "We have a good relationship with the mayor and council, and they’ve been good partners in the growth of our business."
   The mayor said the municipal government feels fortunate that a globally recognized company such as Shiseido chose to locate in the township.
   "They’re a terrific corporate citizen, and very sensitive to the community," Ms. Mironov said. "They employ many of our local residents and participate enthusiastically in many of our township-sponsored projects and charities throughout the area."
   The company has been lauded for community involvement and recognized this year by the nonprofit and Hightstown-based Community Action Service Center, which gave it a Community Activist Award earlier this month for its charitable work in the area.
   "Shiseido’s management is firmly committed to East Windsor and Mercer County," Mr. Halligan said. "Our human resources and corporate policy for working within the local community is an important aspect of that commitment."
   Mr. Halligan said Shiseido’s aim also is to maintain a positive ecological policy. He says it has won recognition from the International Standards Organization, which has established worldwide parameters for environmental compliance and quality management.
   "Shiseido America Inc. has been certified for the last even years as a globally recognized quality organization and an environmentally friendly organization," he said.
   Mr. Halligan said the company is "hoping and anticipating that the growth of our business will be maintained." Such growth would mean even more production and manufacturing on site, and the company wouldn’t have to worry about finding enough room. The original facility, which cost $15 million in 1998, was built on 88 acres of land on Princeton-Hightstown Road.