Re Joint Venture

RNS Number : 0359Z

Swallowfield PLC

15 July 2008

 



July 15, 2008

SWALLOWFIELD FURTHERS GLOBAL PRESENCE

UK firm signs Chinese joint venture deal

Swallowfield plc, the £45m turnover cosmetics, toiletries and household goods solutions provider, has signed a joint venture agreement with Jahwa, IE, a subsidiary of one of China's largest players in the toiletries sector, and Kasho, a Japanese investment company.

The deal will see Swallowfield providing its own intellectual property, including formulations and quality systems to the Joint Venture Company (JVC), in return for exclusive access to European markets for the products produced by the JVC.

Swallowfield will also hold a10% stake in the business, acquired at a cost of approximately £45,000, and have a seat on the board.

In addition to creating potential new sales opportunities in Europe, the joint venture allows Swallowfield, which has operations in Wellington, Somerset and Bideford, North Devon, and Tabor in the Czech Republic, to give their customers' even greater assurance regarding the quality and standards of products that are being sourced and produced by the company in China.

Ian MacKinnon, Chief Executive of Swallowfield, said: 'This is a great opportunity as it further strengthens our presence in China, where we have had an office since 2004. It is a continuation of our strategy to grow Swallowfield's global reach, and follows the opening of our production facility earlier this year in Tabor in the Czech Republic. 

'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.'

Swallowfield's existing operation in Shanghai is responsible for sourcing of packaging and finished goods from South East Asia to support and enhance the contract manufacturing services provided by Swallowfield's UK and Czech Republic production centres.

It has allowed Swallowfield to form close business partnerships with a select group of suppliers, and gives the company greater control of quality and delivery from China.

Ends

NOTES TO EDITOR

Swallowfield is today a full service provider for brands operating in the cosmetic, personal care and household goods marketplace. This includes market analysis; design, formulation and testing of products; packaging design and sourcing; and distribution and stock management. 

For further information, please contact:

Swallowfield plc
Ian Mackinnon,	Chief Executive Officer	01823 662 241
Mike Coe / Marc Davies,	Blue Oar Securities Plc	0117 933 0020
Chris Lawrance,	JBP Public Relations	0117 907 3400

 

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