Investment Made in South Korean Cosmetic Material Technology Venture
NEW YORK, July 26, 2012 /PRNewswire/ — On June 27, 2012, Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) and Sumitomo Corporation Korea Ltd. (Head Office: Seoul; President and CEO: Tadashi Kobayashi) purchased 25% of Biogenics (Head Office: Daejeon, Korea; CEO: Son, Tae Hun), a Korean venture company specializing in cosmetic material technologies.
Established in 2006, Biogenics’ core expertise is in encapsulation, solubilization and stabilization technologies. The company’s material technologies are attracting attention from leading cosmetics manufacturers for their potential to provide unique solutions to overcome challenges that have confronted the industry for many years involving the stabilization of active ingredients. For example, many skin beautification materials used in the skin care industry present technical challenges. They may be unstable in terms of their physical properties or particle size, thereby hindering performance on the skin. The Biogenics’ teconology seals these active ingredients inside micro capsules in order to maximize their effectiveness at point of use. With the recent investment, Sumitomo Corporation will seek to standardize Biogenics’ management in order to gain the confidence of customers, most of whom operate within the cosmetics industry. It will do this by introducing its own management know-how and enhancing Biogenics’ credit management, inventory control, exchange control, materials and raw materials procurement, and response to laws and regulations.
In 2010, Sumitomo Corporation acquired 100% ownership of Presperse Corporation (Head Office: New Jersey, U.S.; Representative: Greg Torchiana), a U.S. developer and supplier of cosmetic ingredients, and made a full-scale entry into the cosmetics and personal care market. Positioning Presperse as the core player, Sumitomo Corporation is pursuing the following strategies in the cosmetics sector: (1) establishment of a global sourcing system, (2) expansion and improvement of technology and product lines, and (3) enhancement of R&D functions of cosmetics ingredients and formulation services. The recent investment in the promising material technology venture will promote the above strategies (2) and (3) and business synergy with the group company in the USA, Presperse Corporation.
The cosmetics industry is a promising one, with global cosmetics sales totaling approximately $447 billion. This figure is expected to grow over the coming years at a projected annual rate of 5 to 6%, mostly driven by emerging economies. Sumitomo Corporation will aim for the early realization of synergies between Presperse and Biogenics while continuing to promote its own business strategies and contributing to the further development of the cosmetics and personal care market.
Outline of Biogenics Company name: Biogenics Established: 2006 Head office: Daejeon, Korea CEO: Son, Tae Hun Main activities: Development and sales of cosmetic material technologies Outline of Presperse Company name: Presperse Corporation Established: 1981 Head office: New Jersey, U.S. CEO: Greg Torchiana Main activities: Development and supply of cosmetic materials
SOURCE Sumitomo Corporation