Beauty packaging company HCP (Baring Private Equity Asia) announced a commercial partnership with dispensing technology specialist Pum-Tech Korea (PTK) this spring. The company tells Luxe Packaging Insight about the first steps it is taking towards an eventual joint venture.
The commercial partnership is two-pronged. First, HCP will distribute PTK products made in Korea globally (excluding Korea and Japan) enabling HCP to strengthen its beauty-packaging offer with new dispensing technologies. Secondly, HCP will be able to source packaging components (such as engines) with a focus on airless/airtight compacts as well as skincare bottles.
Crystal Xie, skincare product manager at HCP, tells Luxe Packaging Insight that that the deal will offer “an opportunity to source components from Korea, while HCP China will manufacture the fashion parts in what is a lower cost region.”
“The two companies are benefitting from HCP’s extensive global sales and support network alongside Pum-Tech’s skincare technology expertise. It expands HCP’s product focus further into skincare and provides PTK with a large capacity manufacturing expert in China for the future,” she explains.
Indeed, if the partnership is successful, a deeper relationship is envisaged, including a joint venture to expand production into China using HCP’s existing factories. PTK President Lee Do-Hoon explains that this will allow the supplier to “supplement its Korea manufacturing operations with the competitiveness and speed that made-in-China can provide for certain products in certain markets.”
“HCP already has an extensive and high capacity for injection molding and finishing capability–so capacity will be built to support in line with the market needs,” says Xie.
No timeline for the second phase of the partnership has been announced. Xie confirms that there will be no changes to capital structure, nor organization or senior management changes based on the current agreement.