German injection machine maker Engel Holdings GmbH and French mold maker Plastisud SA have ended their exclusive joint venture in the Chinese market for water and soft drink caps, saying that while they still plan to work together they are now both free to find other potential partners.
The companies announced their Green Cap joint venture in April 2012, and said they would jointly develop tailored turnkey solutions in China's packaging market.
But in a statement released Nov. 7, they said that the situation has changed: “To do justice to the increasing demand in China, the two companies have agreed to discontinue the exclusivity of their cooperation and open up to further partners.”
“We will continue to mutually develop and commission turnkey solutions for our customers in the future,” said Plastisud Chief Executive Officer Jean-Luc Giraud, in a statement. “The difference is though that both Engel and Plastisud can now also implement complete systems for the Chinese market with other suppliers.”
“This will make our customer potential even greater,” he said. “We can now also supply to processors, who are committed to working with a specific injection molding machine supplier or mold maker due to factory standards.”
The companies said China is the world's biggest market for drink caps, by volume, and said plastic bottle makers there are increasingly turning to single-source systems to meet growing requirements for weight reduction, quality and energy efficiency.
Both companies have offices in Shanghai. They unveiled their joint venture last year at the Chinaplas trade fair in Shanghai, and said it would be run from Engel's Shanghai factory.