In a recent post about Barry Callebaut (and in particular Stollwerck) I pointed out that investing in Swiss companies means investing in the global economy. Here’s another example: CPH Group (Ticker: CPHN) expanding in China where they will invest CHF 10-15 million in a new plant. This is a way to play the double-digit growth rates in Asian blister film demand.
CPH Group expanding to China
Perlen Packaging, the packaging division of CPH Chemie + Papier Holding AG, is to establish a new film coating production facility in China. The new plant will
commence operations in 2016, and should provide further impetus for the present growth in the Asian pharmaceuticals market.
The demand for blister films among Asia’s pharmaceuticals manufacturers is currently seeing double-digit percentage annual growth. China in particular is witnessing a substantial increase in demand for medications owing to a combination of urbanization, rising incomes and an ageing of the population. Perlen Packaging, the packaging division of the CPH Group, already generates some 20% of its sales in Asia, and is now planning to intensify its production and distribution activities in this regional market.
To this end, Perlen Packaging is establishing a production site in China to join its existing facilities in Perlen (Switzerland), Müllheim (Germany) and Whippany (USA). Land is currently being acquired in the Shanghai area, on which a film coating production facility should be built in the next two years. The facility, which will entail a lower-double-digit-million-franc investment, will be certificated to GMP standards, and will serve the Asian market.
“Our Packaging Division has achieved steady growth over the last few years, and is now one of the world’s top three providers of blister packs for the pharmaceuticals market,” says Peter Schildknecht, CEO of the CPH Group. “Our existing film coating facilities will reach their capacity limits in the next few years, though,” he continues. “So this expansion to Asia is a logical step that will enable us to respond even more swiftly to local customer needs.”
“With its new production site in the Shanghai area, Perlen Packaging will be ideally positioned to serve the rapidly-growing Chinese pharmaceuticals market,” adds Wolfgang Grimm, Head of the Packaging Division within the CPH Group.