Oral - Creative Outsourcing Solutions International Ltd

Earlier today, I was delighted to announce the decision by Creative Outsourcing Solutions International Ltd to invest in its manufacturing facility in Maesteg. This multimillion-pound project to turn its Maesteg plant into a state-of-the-art manufacturing facility—in fact, its UK manufacturing headquarters—is most welcome.

COSi is a global leader in the outsourced development and contract manufacturing of colour cosmetics, fragrances and personal care products for major brand owners all over the world. The company was founded in 1992 in South Africa, but moved to the UK via the acquisition of The Body Shop International’s factories in West Sussex in 2000, and Revlon’s former factory in Maesteg the following year.

COSi now employs approximately 1,000 people worldwide, and, with sales and sourcing offices in the United States, Italy, France, China and the UK, COSi offers an expanding global service. Turnover for 2006-07 is forecasted to exceed £100 million, placing COSi as one of the top-10 beauty contract manufacturers worldwide. COSi currently works with over 60 different cosmetics and personal-care businesses, including such well-known brands as Proctor and Gamble, Unilever, Mary Kay, The Body Shop and L’Oréal. New high-tech equipment, advanced manufacturing systems and clean-room environments will be introduced, adding 100 million units of production capacity and supporting the company’s plan to double its turnover within the next three years and to create around 300 jobs.

As I said previously, the Maesteg facility will become the company’s UK manufacturing headquarters. Along with the First Minister and officials from my department, I have been closely involved in developing this project for Wales. The investment is of particular importance to Maesteg and the south Wales Valleys, where COSi is a key employer with a reputation for high-quality training and development, and which currently employs around 700 people. We feel that the company’s decision to invest and expand here is recognition of the first-class workforce available and of Wales as a place to do business.

This shows that Welsh manufacturing can still have a vital role to play in the new era opened up by globalisation, despite the challenge of low-cost competitors, illustrated by the recent announcement by Cooper-Standard Automotive to close its facility in Maesteg, with a loss of 250 jobs. I am sure that all Members welcome this news today, and that, like me, you will applaud the company’s decision to invest here. I believe that it demonstrates Wales’s commitment to supporting its manufacturing sector in achieving truly global status.