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PARIS, France — Hermès International SCA said it will open two new leather-goods production sites over the coming two years in France to meet surging demand for products that include the $10,000 Birkin handbag.
One facility will be located near Bordeaux and the other will be in the Paris region, Hermès said Monday. Each will employ about 250 workers.
Increasing production is a key aim for Paris-based Hermès as it seeks to reduce waiting lists for its signature handbags. After being largely insulated from a slowdown in luxury consumption in 2015 and 2016, the company is trying to respond to a rebound in demand for high-end goods by training leather workers and adding new sites. The company already expanded its production capabilities earlier this year in France.
The latest moves come as President Emmanuel Macron is pushing through economic reforms and slashing corporate taxes. The changes have helped lift French business confidence to its highest in almost a decade, while unemployment has dropped by about 1 percentage point since the beginning of 2015, to about 9.5 percent.
By Mark Deen; editors: Fergal O'Brien, John J. Edwards III and Eric Pfanner.
