Today it was announced to customers that HCP and PUM-TECH KOREA (PTK) have signed a Commercial Partnership Agreement as part of a broader Strategic Relationship agreed earlier between the companies, both of which are global leaders in the development and manufacture of prestige primary packaging containers for the beauty industry.
This Commercial Partnership will encompass two distinct operating models:
This partnership is only a first step and, based on its success, the companies are planning a deeper relationship (including a Joint Venture), to enable both to enjoy growth in China and major global markets via joint manufacture of products with increasingly localised / made-in-China content.
Outside the Korea and Japan markets, HCP’s role will be global in scope and fully exclusive, with the exception of certain pre-existing distribution relationships that PTK will maintain.
HCP Group President and CEO Eddy Wu said: “We have come to admire PTK’s reputation for dispensing technology which is viewed by our largest brand customers as second-to-none.
"Bringing this technology into our offering will enable HCP to virtually complete our diverse range of packages for the colour cosmetics, skin care, and fragrance sectors with a dispensing capability that we could not offer in the past.
"Together we can make this world-class dispensing capability unbeatable as product is sourced increasingly from China.”
PTK President Lee Do-Hoon said: “This partnership with HCP will enhance our existing distribution relationships, leveraging HCP’s reach into all leading global beauty brands, while enabling us to supplement our sophisticated Korea manufacturing operations with the competitiveness and speed that made-in-China will give us for certain products in certain markets.
"While primarily a commercial relationship for the moment, we hoping to strengthen our presence in global markets via HCP’s outstanding customer relationships as well as world-class China / global manufacturing that we can jointly enhance”.
Based on the current agreement, there will be no senior management or organization changes or changes to the company’s capital structure.