Fortune 500 company BASF signed a contract for a project on high-end skin care and cosmetic products technical reform with a total investment of about $41 million with a new output value of about $77 million. It is worth noting that at the end of last year, BASF also invested in a production unit for Uvinul® A Plus (sunscreen) in Shanghai. The new unit has a design capacity of about 1,500 tons per year.
On May 12, Beijing time, nine high-quality industrial projects in Jinshan District, Shanghai conducted on contract signing online. BASF Care Chemical(Shanghai) Company Limited (hereinafter referred to as “BASF”) signed a contract for a project on high-end skin care and cosmetic products technical reform.
BASF, a Fortune 500 company, signed a contract for a project on high-end skin care and cosmetic products technical reform with a total investment of about $41 million with a new output value of about $77 million and new annual tax revenue of about $23 million.
The project will turn BASF into an integrated headquarters base for the production and sales of high-end cosmetic raw materials and care chemicals. By promoting the construction of its care chemicals headquarters base, it will further undertake to extend the development of related mid- and downstream industries, thereby accelerating the cultivation of a 10-billion-yuan daily-use chemicals, cosmetics and care products industry cluster.
It is worth noting that in December 2021, BASF China’s official website announced the investment in the establishment of a production unit for Uvinul® A Plus (sunscreen) in Jinshan, Shanghai, China, to further expand BASF’s production capacity for its UV filtration portfolio in the Asia-Pacific region. This follows BASF’s commitment in August 2020 to invest in a production plant for this product in Asia with a design capacity of around 1,500 tons per year and an expected start-up date of the first half of 2023.
In addition to this, international beauty groups L’Oreal Group and Shiseido Group have also made investments in China this week. The two beauty giants have added new investment companies in China one after another releasing the signal of “attaching importance to the Chinese market” which is self-evident.
Today, China is not only one of the largest markets for L’Oreal, Shiseido and other global giants, but also the second largest beauty market in the world. And along with the evolution of China’s beauty market channels, brands and supply chain, the investment logic of international companies in China is bound to change. They will no longer acquire and develop new brands independently but making business investments in a more flexible way.
According to incomplete statistics, at present, Unilever Group, Beiersdorf Group and other internationally renowned cosmetic companies have opened their investment layout in the Chinese market. It is worth noting that the investment range of these top beauty companies is relatively wide covering cosmetic upstream raw material enterprises, industry-related technology enterprises and operation enterprises. For example, Unilever’s high-end beauty division has set up a joint venture company GoUni with Hangzhou GoLong Holdings Co., Ltd. with the intention of creating a local Chinese team to operate new high-end beauty brands.
Against a backdrop such as a serious epidemic, the Russia-Ukraine war, logistics congestion and so on, why are international companies choosing to expand their investments in China?
The deputy director of the Department of Finance, the Ministry of Commerce of the People’s Republic of China and the spokesman of the Ministry of Commerce of the People’s Republic of China, Shu Jueting, said that multinational companies are actively expanding their investments in China, which, in our opinion, fully reflects the firm confidence of foreign investors in the prospects of China’s economic development, the remarkable results of China’s expansion and opening up to the outside world and optimization of its business environment, and the large size of China’s market, complete industrial support, perfect infrastructure. It fully reflects the strong attraction of China’s market size, complete industrial support, perfect infrastructure and abundant human resources to foreign investors. The Chinese government will continue to welcome investors from all over the world to invest in China and share the dividends of China’s development.