Swallowfield signs Asia joint venture agreement
Contract manufacturer Swallowfield Plc has signed a joint venture agreement with Jahwa IE, a subsidiary of one of China’s largest players in the toiletries sector, and Japanese investment company Kasho.
Contract manufacturer Swallowfield Plc has signed a joint venture agreement with Jahwa IE, a subsidiary of one of China’s largest players in the toiletries sector, and Japanese investment company Kasho.
Swallowfield will hold a 10% stake in the business, acquired at a cost of approximately £45,000, and a seat on the board.
The deal will see Swallowfield providing its own intellectual property, including formulations and quality systems, to the joint venture company. In return, the UK-based firm will gain exclusive access to European markets for the products produced under the agreement.
“This is a great opportunity as it further strengthens our presence in China, where we have had an office since 2004,” Ian MacKinnon, chief executive of Swallowfield, said. “Above all, the joint venture agreement is part of our ongoing strategy to increase revenues by being a global provider of solutions to the international cosmetics and toiletries sector and to reduce our cost base.”