Pechiney International SA is strengthening its position in beauty products in Asia through a link with Indonesia's Tiger Group.
Pechiney's perfume and cosmetics packaging subsidiary Techpack SA is creating a new company, Techpack Asia in Semarang, Indonesia, to acquire the majority of Tiger Group's cosmetic product assets. The deal includes 120 injection presses and six surface-treating lines, according to Paris-based Pechiney.
In addition, Techpack Asia will take control of a venture currently owned by Pechiney and Semerang-based Tiger. The venture, CT-Pack, was established in 1997 to injection mold lipstick cases. It has annual sales of almost US$5 million and 18 injection presses at a plant in Demak, Indonesia.
According to Pechiney, the combined operations of Techpack Asia will have annual sales of about $20 million and will be headed by President Jean-Paul Imbert. David Tanudisastro will hold the title vice president of operations of the new firm. He is the brother of Tiger owner Nurtjahya Tanudisatro, who will own a 5 percent stake in Techpack Asia. Pechiney will own the rest.
``This operation will give Techpack greater access to competitive cost structures, particularly in the areas where Tiger Cosmetic has great expertise such as short production runs of compact cases and lipsticks with complex printing or make-up and beauty-care jars,'' said Techpack SA Chief Executive Officer Richard Seguin.
Tiger has molded a variety of products for Techpack's New York-based subsidiary Cosmetech Mably International LLC, initially for customers in North America and later in Europe, Imbert said.
Techpack has other production in France, Spain, Italy, Mexico, Brazil, Argentina and the United States. The unit employs 4,300 and recorded 2001 sales of 460 million euros ($446 million).
Apart from cosmetic packaging, Tiger retains a major molding shop and assembly operation in Semarang. The company manufactures a range of products including household goods and flashlights and will keep 130 injection presses, Imbert said.