Givaudan Expands U.S. Presence with $215 Million Ohio Plant Investment To Avoid Tariffs

Givaudan is taking another step in its expansion in the United States with the construction of its own factory that will allow it to avoid tariffs. The Swiss fragrance and flavor giant has begun construction of the production plant in Reading, Ohio, with an investment of around $215 million, and which complements the company’s commitment to the U.S. market.

The plant will occupy 258,000 square feet within a total space of 107,000 square feet intended to accommodate future growth, the company said in a statement Thursday, in which it did not mention the issue of U.S. tariffs.

It is, however, the Swiss group’s largest investment in the United States in recent years, and is part of its investment strategy in the country. The facility will create 300 jobs, and will strengthen the group’s presence in North America, where it already has 17 facilities for its food industry division.

The president of Taste & Wellbeing at Givaudan, Antoine Khalil, said that by expanding its operational capacity, the company “is positioning itself for future innovation in North America. “ Construction is expected to be completed in 18 months. The implementation of U.S. tariffs on almost every country in the world has jeopardized the supply of companies to their businesses in the country, which is already starting to result in increased domestic production to save the extra cost of customs duties.

Givaudan operates globally through two major divisions, food and fragrances for perfumes, cosmetics and the beauty industry in general. This new building will produce products for the former.

The plant will occupy 258,000 square feet of floor space and will accommodate the expected growth of the company

The plant will increase Givaudan’s production capacity in the region, at a time, moreover, when it is in full expansion in the territory. Earlier this month, it was announced that Givaudan intends to buy the US-based Belle Aire Creations, as part of its expansion strategy in the territory by 2030. The goal is to grow in product categories and materials while increasing its sales by 6%.

Although the financial terms of the acquisition were not disclosed, the Swiss group said in a statement that Belle Aire Creations would have represented approximately 65 million Swiss francs ($81.1 million) in additional sales for Givaudan by 2024.

In addition, the fragrance and flavor group announced in the summer changes to its top management for the coming year, with the retirement of its former CEO. Gilles Andrier, who has been CEO for more than 20 years, will be replaced by Danone’s President for Asia, Middle East and Africa, Christian Stammkoetter.

The company, one of the largest in the world dedicated to the production of fragrances and aromas, closed the first half of the year with a turnover of 3.8 billion Swiss francs ($4.7 billion), representing an increase of 3.4% over the same period last year. At constant exchange rates and excluding acquisitions, the increase was 6.3%, the Geneva-based company reported.