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Nippon Shikizai has become one of the largest investors in its category

Benefiting from a genuine J-Beauty revival, which rhymes with quality, high technology and sensoriality, Japanese group Nippon Shikizai has increased its production capacity by almost 50% in the space of two years, both in Japan and in France. This performance is due not only to direct production investments in its factories in Japan and France, but also to the acquisition in 2017 of Orléans Cosmetics, which was renamed Nippon Shikizai France a few weeks ago. With sales of almost $110 million in 2018, the Japanese group is confirming its international ambitions and establishing itself as one of the world leaders in cosmetics and pharmaceutical subcontracting.

In Japan, the Nippon Shikizai Group has three plants located in Kanagawa (Zama Plant), Osaka (Suita Plant) and Ibaragi (Tsukuba Plant). Here, too, the Group is taking full advantage of the growth in cosmetics worldwide, and particularly in Asia, where it is one of the leading players. Sales have risen spectacularly over the past three years, thanks in part to the success of Japanese cosmetics. Exports have risen by 44 %, including 34 % to China, forcing the Group to invest heavily. Investments accelerated. More than $30 million has been released over the 2018/2020 period, mainly dedicated to increasing bulk production capacity at the Tsukuba plant, which had already benefited from major investments between 2014 and 2017 with the construction of a new building dedicated to packaging make-up products. The same plant has also been approved by the US authorities for the manufacture of OTC products.

A European strategy begun in 2000 with the purchase of Thépenier Pharma & Cosmetics, under the impetus of Mr. Kouji Okumura, Owner and President of Nippon Shikizai. It took him twenty years to bring the company to where it is today, and to enable it, thanks to its "pharma" production tool and its good manufacturing practices, to also be in a strong position in the development and production of liquid formulas and emulsions for the manufacture of skin-care and make-up products with, in particular, all the new hybrid ranges that are today seducing several major brands in the cosmetics industry. In 2018, under the impetus of its President, Mr. Tsuyoshi Hasuo, the turnaround has been achieved. Thépenier Pharma & Cosmetics' sales have risen from 9 million Euros in 2014 to 20 million Euros in 2018, and profitability is on the rise. All this has been achieved at the cost of major investments (more than 8 million in 4 years) to modernize production facilities and standardize production techniques dedicated to pharmaceuticals and cosmetics, making Thépenier Pharma & Cosmetics, in proportion to its sales, one of the biggest investors in its market.
This spectacular growth was relayed in 2017 by the acquisition of a second 35-strong French company, Orléans Cosmetics, specialized mainly in the manufacture of make-up powders, hot-cast products and fragrance derivatives. This is a company in which the Group, continuing its logic, will invest nearly a million euros in 2018 and 2019, notably with the production start-up of a new compacting line, a new loose powder filling line, a new hot-casting line, not forgetting the commissioning of a new washing room and new mixers. The aim was to modernize the entire machine park and rapidly increase production capacity by 30 %! These efforts were crowned with success, as last year the company broke even, increasing sales by 37 % compared to 2017. A trend that is continuing at the start of 2019!

 

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