The move aims to strengthen Sensient’s footprint in the growing Central and Eastern European market and will give the company core capabilities in specific areas of the cosmetic and personal care field.
Headquartered in Poznan, Western Poland, LCW Polski is focused on the manufacture of ingredients for a wide range of applications, including nail polish make-up, skin care and general personal care products.
Expansion into faster-growing Eastern European market
The company is said to have expanded significantly in recent years, fuelled by significant economic growth in the Central and Eastern European region that has in turn translated into increase spend on cosmetic and personal care products.
"Strengthening our access to new markets is a key part of the Company's strategy," said Kenneth Manning, chairman, president and CEO of Sensient Technologies.
In particular he made reference to the company’s mainstay domestic market: "Poland is an important market where we see a great deal of opportunity."
In 2009 the company announced the expansion of two new facilities in China in Shanghai and Guangzhou to support rapid expansion in the fast-growing China market.
Shifting focus to growth markets
Sensient wants to expand its global reach and is particularly focused on increasing its footprint in faster growing emerging markets. This is following a global trend whereby established players in developing markets have had to turn to new markets to counterbalance the effects of limited growth potential on the domestic front.
Although growth in the Central and Eastern European region was affected by the economic downturn in 2009, the markets there still continue to register growth that far exceeds the largely stagnant state of the developed markets.
According to Euromonitor, the estimated value of the market for beauty and personal care products in the Eastern European region, grew by a CAGR of 5 per cent between the five year period 2005 and 2010, up from $17.6bn to $25.8bn.