The new facility specializes in injection stretch blow molding (ISPM), which the company says is a specialized technology that is not widely available.
This technology would allow the company to offer glass-like PET packaging with all the benefits of plastic. More importantly, it’s a sustainable option that beauty brands can consider.
“We can reproduce and imitate glass with the advantages of plastic in terms of non-breakability, durability and recycling. We can incorporate a high percentage of [post-consumer resin] in the blowing, up to 100% if we want it”, said Samuel Xuereb, executive director of Toly Asia.
“We have seen a strong demand for this type of packaging. Because it is above all a mono-material. It’s a part, you don’t have several different components, it’s just a material, which can go directly into the existing recycling stream.
He pointed to this appetite for sustainable packaging as a key driver for this expansion.
“The market is obviously very hungry for this type of product and sustainability is definitely at the top of it all. Yes, there was a demand for these bottles even before the whole sustainability program was in place, but it’s certain that sustainability is the number one driver of it all.
Along with the demand for more environmentally friendly packaging, the company is bringing this technology to Korea to follow the localization trend.
“What we’re seeing in the world right now is locating and manufacturing where you’re going to sell. There seems to be a strong push for that, at least from the big global brands,” said Xuereb.
Additionally, the company has identified new opportunities in the domestic market, he said.
“The local Korean market is huge and for us it is almost untapped. This is a huge opportunity to open up and grow in the local market.
At the same time, the focus on Korea could potentially offset China’s gloom caused by the lockdown in the first half of the year and the general lack of consumer confidence in the market right now.
While China remains one of the company’s most important markets, it expects business to slow over the next 12 months.
Besides Korea, the company is also looking to new growth markets such as Southeast Asia.
“We see a lot of exciting opportunities in Southeast Asia, in countries like the Philippines for example where there are emerging brands,” said Xuereb.
“We’re starting to work with brands that we never would have thought of before. They’re exciting because they’re growing faster, going for high-end products, expensive formulas, and spending on packaging. These are optimistic opportunities.