Alcan moves in on China beauty packaging market

- Last updated on GMT

Related tags: Personal care products, Cosmetics, Alcan packaging, China

Alcan is to purchase a packaging manufacturing site in the
ChineseSuzhou region, which will be equipped to fabricate beauty
and personal care products. The company says the move will better
serve it to and meet fast growing regional demand, reports Simon

"This investment enables us to be better aligned with our customers' development inthese emerging markets,"​ said Christel Bories, president and chief executive officer,Alcan Packaging.

"This new manufacturing base will be supported by our technicalexpertise and development capabilities. Our customers are looking for global supplierswho can ensure quality, service and reliability throughout the world,"​ she added.

Alcan Packaging​, which currently is a global leader in aluminum packaging with facilities in 55 countries, has signed an agreement with the local government of the Mudu NewDistrict for the manufacturing site, which will initially produce plastic and aluminumpackaging for make-up and skincare such as mascaras, lipsticks, compacts, cream jarsand dispensers.

Production will begin in the third quarter of 2005. The plant is located on a 100,000 square meterssite which the company says could be further developed in the future.

The new operation should help to underpin AlcanPackaging's business strategy for profitable growth aimed at maximizing value, and willbe supported by its 12 existing plants in Asia.

The company should now be well positioned to tap into the vast explosion in demand for cosmetic and personal care products in China. With GDP currently running in excess of 8 per cent, demand for consumer goods is being led by an increased awareness in personal appearance.

Currently the market for cosmetics in China is valued at €3 billion, but with GDP running at over 8 per cent annually and consumer sales following very strong growth patterns, industry analysts estimate that this figure could increase ten-fold by the year 2010.

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