Huvis ECOPET establishes a joint venture in China to expand into the local market
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Huvis has hit its stride in expanding into the Chinese market with its eco-friendly container ‘ECOPET’.
Huvis(CEO Shin, You-dong, 079980), a specialized chemicals and fiber materials manufacturer, announced on the 14th that it has signed an agreement to establish Chongqing Huvis Eco Pack Materials Co.,Ltd, a joint venture for manufacturing and selling eco-friendly food container ECOPET in China.
Huvis will own a 55% stake in the joint venture through its overseas investment affiliate Huvis Global, and the rest will be owned by local food container companies Chongqing Beike New Material Co., Ltd.and Chongqing Jiangtong Huanbao Suye Co., Ltd.. The joint venture will complete building the manufacturing facilities earlier next year in Chongqing and begin sales in 1st Half.
ECOPET, which will be manufactured by the joint venture, is a sheet-type PET foam material that can be used as convenience food containers, such as cup noodles and packed meals. It is an eco-friendly material free of endocrine-disrupting chemicals, certified as non-toxic by the Ministry of Food and Drug Safety (MFDS) and the U.S. Food and Drug Administration (FDA).
It has excellent thermal insulation and heat-resisting properties compared to previously used materials, is safe to pick up the hot container by hand, and maintains the natural flavor of food. It is even recyclable, and thus its excellent quality is acknowledged by having won the Prime Minister Award at the Korea Star Awards 2017, as well as Asia Star Awards and then World Star Awards in 2018 as an innovative material that lowers the burden of environmental issues.
ECOPET containers are more suitable for local production than exporting because it has a high volume due to the nature of foam material as well as high distribution costs. The local manufacturing facilities through the joint venture are expected to drive the production of ECOPET, securing a favorable position in the rapidly growing Chinese convenience food market.
The instant hot pot market in China is worth KRW 3.5 trillion and is rapidly growing at 40% on average each year. Experts are forecasting that China’s craze over home meal replacements (HMRs) will go on, especially since the culture for packaged foods is so advanced in China. Moreover, considering the increased environmental regulations, the demand for eco-friendly food containers is expected to grow significantly.
“ECOPET has significance in that it has been the first in the world to provide heat insulation capacity to a hot pot container that requires high thermal insulation and heat-resisting properties,” said Huvis CEO Shin, You Dong. “By entering the Chinese market, we secured a bridgehead to let not only Korea but the whole world know of the excellence of ECOPET and expand the scope of its commercialization. We’ll place top priority on safety for the human body as well as eco-friendliness and make further efforts to develop new materials.”
▲ The food container made with ECOPET is safe to pick up by hand even when containing hot food, due to its excellent thermal resistance.