AVON TO BUILD PLANT IN S. CHINA

AVON TO BUILD PLANT IN S. CHINA

U.S.-based cosmetics maker Avon Products Inc. said Thursday that its Chinese subsidiary plans to build a $40 million manufacturing plant in Conghua in southern China to support the company's expansion in that country.

Construction is expected to begin in the third quarter of this year, and the plant should be operational in the first quarter of 1997.At full capacity, the facility will employ up to 900 people and produce up to 120 million units of cosmetics products including lipsticks, skin creams and perfumes. Most of the products will be sold in China.

The new plant will replace Avon's existing leased facility, about 30 miles away in Guangzhou, which has a maximum capacity of about 35 million units and currently employs about 350 people.

Avon entered China in 1990 and has invested over $30 million to expand its operations there, mainly in the form of working capital and inventories.