Mary Kate Explores Future Options
Multi-Million Dollar Update to Dallas Facility or New Location Considered.
Mary Kay, a top beauty brand in more than 35 markets around the world, announces the appointment of CBRE, the world’s largest commercial real estate services and investment firm, to explore future options for the company’s global manufacturing and research and development (R&D) facility located in Dallas, Texas. The analysis by CBRE will provide insight and analysis for Mary Kay Inc. as the company considers updating its existing operation or building a new facility to house both manufacturing and R&D.
The beauty company’s current global manufacturing facility opened on Regal Row in Dallasin 1969. Today, the 420,000 square feet facility produces up to 1.1 million units of in demand made-in-America products per day, of which 57 percent are exported to Mary Kay Inc.’s international markets. As CBRE completes its analysis, construction sites for a possible new facility will be considered in the Dallas/Fort Worth area.
«Approximately 75 percent of our business is overseas today and yet more than 50 percent of Mary Kay® products produced at the Dallas manufacturing facility are exported to our international markets,» said David Holl, President and Chief Executive Officer for Mary Kay Inc. «As we approach the status of a top five beauty brand globally, it’s essential that we continue to have state-of-the-art manufacturing and research and development facilities to produce the highest quality skin care and color cosmetics for our more than 3.5 million independent sales force members worldwide.»
Mary Kay Inc. invests millions of dollars in research and development and conducts more than 500,000 tests each year to ensure Mary Kay® products meet the highest standards of quality, safety and performance. The company employs approximately 600 manufacturing and R&D employees in Dallas.
«Whether we update our current Regal Row facility or explore options to build a new one, our investment could range from $80 to $100 million,» said Holl. «As we have been for more than 50 years, Mary Kay is committed to ensuring that our products consistently meet or exceed consumer expectations. The analysis from CBRE will help point us in the right direction as we continue to provide best-in-the-industry products to our Mary Kay brand lovers worldwide.»
Following the completion of CBRE’s analysis, Mary Kay Inc. is expected to make a decision regarding the manufacturing and research and development facility by the end of 2015.