Sumitomo invests in ‘problem solving technology’ for the cosmetics industry
Biogenic’s core expertise in encapsulation, solubilization and stabilization technologies is said to be attracting attention from cosmetics manufacturers due to its potential to provide solutions to challenges facing the industry in the stabilization of active ingredients.
A Sumitomo spokesperson highlights beautification materials used in the skin care sector as presenting technical challenges, explaining that they may be unstable in terms of their physical properties or particle size, thereby hindering performance on the skin. Here is where Biogenics' teconology is said to seal active ingredients inside micro capsules in order to maximize their effectiveness at point of use.
With the investment, the general trading company is seeking to standardize Biogenics' management in order to gain the confidence of customers, most of whom operate within the cosmetics industry.
“[We] 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.”
Other aquisitions
In 2010, Sumitomo acquired Presperse, a U.S. developer and supplier of cosmetic ingredients, making a full-scale entry into the cosmetics and personal care market.
Including its recent investment and with a goal to position Presperse as its core player, Sumitomo is now focusing on the establishment of a global sourcing system, the expansion and improvement of technology and product lines, and the enhancement of R&D functions of cosmetics ingredients and formulation services.
Furthermore, the company says that despite a recession, it believes 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 per cent, mostly driven by emerging economies."
Going forward, Sumitomo aims for the early realization of synergies between Presperse and Biogenics while continuing to promote its own business strategies and contribute to the further development of the cosmetics and personal care market.
