The Zhanjiang factory, the cosmetic spearhead of SGD Asia Pacific

Interview by Jean-Yves Bourgeois

10 February 2017

SGD Pharma of the former SGD Group, whose main shareholder was until now the US fund Oaktree, has come under the control of the Chinese Investment Group, China Jianyin Investment (JIC). SGD Pharma has five factories around the world, employs 2,700 people for a turnover of 300 million euros. The Perfume division of SGD Group, still under control of Oaktree, was rebranded as Verescence on September 2016. Among the industrial and commercial assets of SGD Pharma which contributed to the interest of the Chinese investment group, SGD owns and operates an Asian entity: SGD Asia Pacific. Its plant is located in Zhanjiang and its two sales offices are located in Shanghai and Guangzhou. SGD Asia Pacific employs 1,200 people and will generate this year, more than 45 million euros in sales, with cosmetics (skincare and make-up) being the company’s third market segment.

Premium Beauty News - In two years the Zhanjiang factory will celebrate its twentieth anniversary!

SGD Asia Pacific - That’s right! With its Zhanjiang plant and with its two sales offices in Shanghai and Guangzhou, SGD Asia-Pacific occupies a prime spot in these very fast developing markets. The glass bottles (flasks, jars, vials) are destined for four primary markets: pharmaceuticals, perfumery, cosmetics and food. It produces today some 350 million pieces a year!

We can really say that SGD Asia-Pacific has succeeded in meeting European and American quality standards for glass bottles. The creation of a class 100000 clean room and the improvements made to the decorating shop enable the plant to meet the quality challenges requested by its customers.

Let me recall the key dates of our presence in China. In 1998 this glass factory is bought by Saint Gobain in Zhanjiang. Between 2004 and 2005, a gradual transformation of the plant is operated for the cosmetics and perfumery markets. Still in 2005, the plant develops itself on the pharma segment and in particular that of medicinal oils. In 2007, two lines are dedicated to upscale perfumery market. In 2008, a clean environment room is created (“grey room”) for cold end and decoration. In 2010, a clean room is created (class 100 000) along with the full automation of production lines. The plant is certified ISO 9001, SA 8000 and ISO 15378. It also owns CFDA pharmaceutical licenses for type II and III glass.

Since 2010, investments have been ongoing with, as a high point, the year 2015 when the site was completely transformed with the installation of a sixth production line and a third lacquering line, representing a total investment of $ 12 million.

Premium Beauty News - You have real ambitions in the cosmetics segment!

SGD Asia Pacific - Absolutely! After our significant investments in 2015, we can say that we have really turned a corner. Our growth rate exceeds 15% per year and our ambition to have one third of the Asian market of cosmetic glass packaging is within reach. The skincare segment is by far our first market in our cosmetic segment with more than 60% of our sales in this segment, followed by foundations and hair care.

To be successful in these markets, you must be able to offer high level innovation to clients. This is what we do every day leveraging the expertise of our glass and decoration teams. Thanks to our technical mastery in the production and decoration of bottles and jars, we offer our clients the possibility to fully exercise their creativity, while remaining competitive. Our teams are also dedicated to providing very fast time to market deadlines, for the benefits of clients.

Premium Beauty News - Could you please give us some examples of recently launched new products?

SGD Asia Pacific - We have strong partnerships, resulting in frequent launches, with international leaders like Estee Lauder, P&G, L’Oreal, Jurlique and many Chinese brands who want to offer high quality level products to their clients also trust us.

View online : www.sgd-pharma.com