As part of the collaboration, Cosmotec will spin off its cosmetic ingredient distribution business into a separate company, in which Sumitomo will be an investor.
"The largest cosmetic market in the world will be Brazil in 2016 and we will be able to satisfy this demand with this investment in Cosmotec", explains Hiromichi Maruyama, general manager, Chemicals and Electronic Group, Sumitomo Corporation of America.
Increase global ops
"Our new business will increase global operation dramatically in the Americas by using Cosmotec's access to Brazilian Cosmetic companies and infrastructures. The Sumitomo Corporation Group will work to add value to the company with our experience, management philosophy and global networks.”
Sumitomo will work closely with Cosmotec and distributer Preseperse, hich it acquired three years ago, to leverage new global procurement capabilities with the goal of expanding its business throughout South America and further developing the cosmetic market.
“Combined with Presperse's R&D capabilities and their existing customer relationships with multinational customers, will enable us to broaden the services that both Cosmotec and Presperse offer their current clients,” adds Maruyama.
Brazil to boom
As the Brazilian market is seeing an increasing number of multinational cosmetic manufacturers from Europe and North America entering the marketplace, it has become a target for specialized cosmetic ingredient distribution.
As the Brazilian personal care market continues to advance, R&D and local manufacturing of cosmetic products will increase along with the domestic demand for formulation services and materials with high functionality from overseas; an area Sumitomo will target.
"We are looking forward to collaborating with the Sumitomo Corporation Group and Presperse in expanding our cosmetic business globally by utilizing our extensive networks and established infrastructures in the Brazil and South America market", said Luciano Fagliari, president and CEO, Cosmotec.
"We will continue our prosperous relationships with our existing suppliers, and basic policies while enhancing our global reach, and service to customers in Brazil."