The company is carrying out the expansion with the aim of doubling its sales of more than $200m over the next five years, particularly by expanding its investments in Europe and targeting markets in this region, which is the only major geographic zone in which it does not yet have a factory.
HCP was acquired by the equity fund TGP capital in 2012, in a move designed to provoke investment in order to further the firm’s continued expansion in manufacturing capability.
CEO Eddy Wu noted in an interview with news publication Plastics News that the company was looking at options besides adding manufacturing capacity in Europe and expanding its Chinese plant, including moving into other geographic regions.
He commented: “Adding European manufacturing would certainly help HCP’s competitiveness. However, this is not the only option. We also look at potentially going into other product categories while we are looking…into other geography. At this point, we have many options.”
New developments
The company plans to expand its existing footprint at the facility by 120,000 square feet, with planned improvements including the addition of another 50 injection molding machines, as well as 10 metallization and painting lines.
Wu commented that the company was planning on making the expansion to their Chinese site in part because the company had already established a “brain trust” in the area.
2012 acquisition
HCP’s acquisition in 2012 by TGP provided new investments for the company and marked the beginning of a series of new investments for the company, including improvements in manufacturing in North America.
At the time, the company suggested that they planned to use the added investments to propel their expansion in Europe, including by constructing a new global facility in that region. Overall, HCP has a 3 percent share in the worldwide plastic cosmetics packaging market.