Nippon Shikizai: objectives are met!
Just a year ago, Kouji Okumura, President and CEO of the Japanese group, Nippon Shikizai Inc., specialized in the design and production of make-up and skin care products, had announced the construction of a new production plant in Japan and, in parallel, substantial investments in its French factory located in Normandy, Thépenier Pharma. The objectives are met today, since both operations are about to be completed. Hence, concerning the French factory, its production area now extends over 9,000 sqm and its production capacity has increased by nearly 230%. Investments that have enabled to increase production in the pharmacy segment but also for products intended for the make-up industry. Several production machines were also added including a brand new three-cylinder pigment grinder. The whole plant, which undertook to receive FDA certification, will have almost increased its sales 1.5-fold, by the end of 2015 with the aim to reach 25 million euros by 2020. The plant in Normandy is capable of producing today face powders as well as compacted powders, mascaras, foundations and any range of make-up base. It may be recalled that Thépenier is historically an integrated pharmaceutical manufacturer, specialized mostly in contract manufacturing. The production palette ranges from medicines, hygiene products to cosmetics. As such, Thépenier provides contract manufactured goods to leading pharmaceutical and cosmetic companies, mainly in Europe.
A 25 million dollar investment!
As for the new Japanese plant, it is running, since March last, in Tsukuba a hundred kilometres from Tokyo. It can rely on 8,500 sqm of buildings on a plot of 35,000 sqm. It has three separate buildings. For the time being, one of the buildings is used for production, the second one serves as a storage area and the third one is planned to be renovated as a bulk manufacturing facility. The main reasons for this investment, which will amount in the end of 5-year plan to 25 million dollars in total, are expansion of production capability in order to respond to the needs of our clients, operation with Business Continuity Planning in order for seamless disaster recovery, and of course, taking advantage of this relocation to make of this new factory the very best in terms of quality and compliance with the highest manufacturing standards (ISO, FDA, etc…).
It may be recalled that the Nippon Shikizai Group will achieve this year a turnover of USD 70 million, employs 500 people in Japan and 100 in France. Make-up represents 70% of its activity as a formulator, and skin-care the remaining.