According to Joseph M. Gingo, the CEO of the international supplier of plastic compounds and resins, with the acquisition; “We believe they are an excellent strategic fit as we continue to focus on niche products in the ever growing cosmetics market.”
Banking on ECM's expertise in custom color matching, compounding and specialty additive formulations, Gingo reckons the company's focus on product development will enhance Schulman's ability to introduce new and innovative products to the cosmetics sector.
"As we have undertaken this shift to higher-value products in engineered plastics, specialized color and masterbatch, we have exited our legacy plants that were dedicated primarily to serving the volume automotive market," he adds.
Schulman signed the definitive agreement to acquire the plastics compounder for $36.5 million and the transaction is expected to close in early September pending the completion of closing requirements.
Fast growing segment
According to market intelligence firm Pike Research, the fastest-growing segment within the sustainable packaging sector over the next three years is anticipated to be plastic-based packaging.
Sales in the sustainable packaging market as a whole are forecasted to almost double by 2014, growing from $88bn (€61bn) to $170bn (€118.6bn).
“More eco-friendly plastic packaging will have a huge impact because it represents more than a third of the total global packaging industry, second only to paper packaging," says managing director Clint Wheelock.
According to the report, the key to producing environmentally friendly packaging is to create a product that has the lowest possible environmental impact whilst still providing the necessary safety, convenience and marketing opportunities that modern consumers demand.
Origins; Estee Lauder’s natural and organic brand, recently launched a recycling programme inviting consumers to return to the store any of its packaging, alongside the cosmetics packaging for any of its competitors.
According to the company, the initiative created a significant impact, with an increasingly environmentally conscious public responding well to the program.