Paris—Kering, the luxurygoods conglomerate and owner of Gucci, Yves Saint Laurent, Balenciaga, and Bottega Veneta among others, is reportedly set to invest 15 million euros (about $20.4 million) in the construction of a new tannery, following its acquisition of France Croco.
The project could create 150 jobs, according to French press reports.
A Vertical Strategy
Kering, however, declined to comment. Kering bought France Croco, an upscale exotic skin maker, last year as part of a vertical strategy to improve production capacity. It’s a similar move that LVMH, Hermes and other brands are pursuing to help them better fulfill the growing needs of the luxury market.
A source close to the project confirmed there are plans to build a new tannery in Périers, Normandy—close to the existing one, which employs around 50 staff.
“The expertise of the local labor force and the municipal council’s commitment to building a water treatment plant serving the new tannery as well as to taking on responsibility for the conversion of the existing plant are key factors in the project going ahead,” the source indicated.
The plant will have six times the capacity of its predecessor and is earmarked to start operations mid-2016.