Beiersdorf AG, establishes affiliate company in Dubai

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This constitutes a major investment for the company in terms of infrastructure in the region.

Robert Taylor-Hughes, General Manager of Beiersdorf Middle East takes up the helm of the new company as Managing Director of Beiersdorf Middle East FZCO. The new operation will service 16 countries across the Middle East, Levant, North Africa and West Asia allowing concentrated geographical focus.

The company has partnered with Public Warehouse Company (PWC), a Kuwait based logistics provider, also established in JAFZA, to carry out its Supply Chain activities in the region. The existing Beiersdorf Marketing office in Dubai Media City will continue to provide media & marketing services for the new company.

Robert Taylor-Hughes, Managing Director commented: 'To maintain Beiersdorf's strong leadership position that has been held for more than 50 years in this increasingly competitive market, the upgrading of our branch establishment to an Affiliate Company is both a progressive and logical move for us. The approval for this was given by the Board in September last year and we established the new company on the 13th of June 2006.

'Full sales, distribution, finance and supply chain infrastructure went live on the 18th of June with SAP®, which fully integrates our supply chain and financial activities with Europe. Our headcount for the total company will increase by 300% before the end of 2006, with concentration of manpower and resources on marketing and supply chain expertise to ensure greater efficiency and support for our customers.

'Our 16 partners in the region will see significant benefits from the new company; products will be more easily accessible from the Dubai hub, thereby improving supply chain efficiency and reducing their working capital. The significant increases in marketing budget from the new profit centre will create much more 'pull' for the brand, reducing the reliance on promotion 'push' and additional investment can be made at the point of sale where ultimately we make contact with our loyal consumers.'