Hermès Continues to Ramp Up French Manufacturing

Hermès Continues to Ramp Up French Manufacturing Alex Wynne PARIS — Hermès International is continuing to invest in its domestic manufacturing base to meet growing demand for its products, especially leather goods, which accounted for 50 percent of its business last year, executive chairman Axel Dumas told shareholders at the company's annual general meeting here Thursday. "The growth of our leather goods was remarkable [in 2016]," said Dumas. The luxury goods firm inaugurated three new factories, he added, and investment continues in this area. In 2016, Hermès invested 71 million euros, or $78.6 million at average exchange, in its production facilities and securing its supply chain. The firm plans to inaugurate its new leather workshop in Val de Reuil, in the Normandy region, next week, Dumas said. It is also investing in manufacturing in the Limousin region of central France. In a context of high unemployment levels in France, especially in rural areas, Hermès took on 590 new employees last year, bringing its total staff numbers to 12,834 at the end of 2016. Some 400 of these positions are based in France, where 61 percent of the firm's employees work in manufacturing positions. "We will continue to create jobs in order to support our growth," said Dumas. Hermès is also promoting manual professions through Follow WWD on Twitter or become a fan on Facebook. Read More... Fashion 3