The company has financial backing from its private equity investment and says it is currently investigating the possibility of establishing its presence in the region by mid-2015.
Private equity investor makes it possible
“Thanks to the support of our financial sponsor, TPG Capital, who is stating our common ambition to continue to work towards positioning HCP Packaging as a leading world player in the beauty packaging industry, we are looking forward to strengthening our presence in the coming months,” said Eddy Wu, HCP CEO.
The company has grown off the back of significant investment in the China market, and last year had an annual turnover of $240 million, up 10% on the previous year.
But as the China market shows signs of maturing and growth slows, the company is looking to expand its presence in other regions worldwide.
According to WU, the idea behind establishing the manufacturing base is to maximize on ‘reactivity to customers’ and to ensure industrial proximity.
Expanding European presence
HCP already has representative offices in both the UK and France, but wants to be closer to the lucrative European market by building on its presence there with a manufacturing facility.
The company was established in 1960 and started operations in the China mainland in 1990, before establishing its first overseas operation in the East Coast of the US in 2003.
Currently the company’s primary markets are North America, Europe and China.
Expansion in China
Last year the company opened its fourth China based plant, the second in Luzhi County, Suzhou which encompasses house injection, coating, metallisation, printing, final assembly and quality lab/testing.
At the end of 2013 the cosmetics packaging manufacturer announced its' plans to carry out expansions in China as it had already established a “brain trust” in the area, and with an aim of doubling its sales of more than $200m over the next five years.
Company reps revealed the goal is to target markets in the AP region and further invest in Europe, which is the only major geographic zone it has yet to establish a facility in.