Japanese conglomerate Sumitomo Corporation, together with its US and Brazilian subsidiaries, is expanding further in the cosmetic ingredient business through the creation of a joint venture with Brazilian supplier of cosmetic ingredients Cosmotec Especialidades Químicas. According to the agreement between the two companies, Cosmotec, which also supplies pet products in Brazil, will spin off its cosmetic ingredient distribution business into a separate company, in which Sumitomo Corporation will be an investor.
Sumitomo entered in the cosmetic and personal care ingredient business in 2010 by acquiring 100% ownership of U.S. cosmetic distribution company, Presperse Corporation. The agreement with Cosmotec will enable the company to get access to the fast developing Brazilian market and to expand further in South America.
“The largest cosmetic market in the world will be Brazil in 2016 and we will be able to satisfy this demand with this investment in Cosmotec”, explained Hiromichi Maruyama, General Manager, Chemicals and Electronic Group, Sumitomo Corporation of America. “Our new business will increase global operation dramatically in the Americas by using Cosmotec’s access to Brazilian cosmetic companies and infrastructures.”
Luciano Fagliari, who founded Cosmotec in 1987 with Marly Yajima Fagliari, will remain as CEO of the new company.
