• Home
  • News
  • Analysis
  •  
    Regions
    • Australasia
    • Southeast Asia
    • Greater China
    • North Asia
    • South Asia
    • North America
    • Europe
    • Central Asia
    • MENA
  •  
    Funds
    • LPs
    • Buyout
    • Growth
    • Venture
    • Renminbi
    • Secondary
    • Credit/Special Situations
    • Infrastructure
    • Real Estate
  •  
    Investments
    • Buyout
    • Growth
    • Early stage
    • PIPE
    • Credit
  •  
    Exits
    • IPO
    • Open market
    • Trade sale
    • Buyback
  •  
    Sectors
    • Consumer
    • Financials
    • Healthcare
    • Industrials
    • Infrastructure
    • Media
    • Technology
    • Real Estate
  • Events
  • Chinese edition
  • Data & Research
  • Weekly Digest
  • Newsletters
  • Sign in
  • Events
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)870 240 8859

      Email: customerservices@incisivemedia.com

      • Sign in
     
      • Saved articles
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
  • Free Trial
  • Subscribe
  • Weekly Digest
  • Chinese edition
  • Data & Research
    • Latest Data & Research
      2023-china-216x305
      Regional Reports

      The reports review the year's local private equity and venture capital activity and are filled with up-to-date data and intelligence on fundraising, investments, exits and M&A. The regional reports also feature information on key companies.

      Read more
      2016-pevc-cover
      Industry Review

      Asian Private Equity and Venture Capital Review provides an independent overview of the private equity, venture capital and M&A activities in the Asia region. It delivers insights on investments made, capital raised, sector specific figures and more.

      Read more
      AVCJ Database

      AVCJ Database is the ultimate link between Asian dealmakers and those who provide advisory, financial, legal and technological services to the private equity, venture capital and M&A industries. It is packed with facts and figures on more than 153,000 companies and almost 117,000 transactions.

      Read more
AVCJ
AVCJ
  • Home
  • News
  • Analysis
  • Regions
  • Funds
  • Investments
  • Exits
  • Sectors
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)870 240 8859

    Email: customerservices@incisivemedia.com

    • Sign in
 
    • Saved articles
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
AVCJ
  • Greater China

Energy transition case study: Axilone

  • Larissa Ku
  • 17 August 2022
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Save this article  
  • Send to  

Energy accounts for a relatively small portion of cosmetics packaging producer Axilone’s overall costs, but rising prices in Europe prompted owner Trustar Capital to accelerate transition efforts

Across the global beauty industry value chain, from original equipment manufacturers (OEMs) to brands, packaging consumes the most electricity. But it is not necessarily an energy-intensive industry: energy is a relatively small contributor to overall product cost.

Europe-based cosmetics packaging producer Axilone is a case in point, with the energy share of cost, in percentage terms, only in the mid-single digit range. But energy price hikes in Europe this year – driven by the Russia-Ukraine conflict – were 10 times higher than anything that came up in the company’s worst-case scenario modelling. As a result, energy transition is being accelerated.

“We expect the price of fossil fuels to remain elevated, so a transition to clean energy is not only beneficial for the environment, but it also makes business sense. All our energy transition programmes across Europe and China are being accelerated this year,” said Yang Shi, a managing director at Trustar Capital who covers investments in consumer and business services.

Founded in 1917, Axilone primarily supplies plastic and metal casings for lipstick, fragrance, and skincare products, working with leading beauty and personal care companies around the globe. It has manufacturing facilities in France, Spain, and China.

Trustar – then known as CITIC Capital Partners – bought a majority stake in the business in 2018. While recycling and pollution were the investor’s priorities in a sustainability context, energy saving and reducing carbon emissions also featured on the agenda.

At the time of the acquisition, Axilone’s France-based factory already ran entirely on green energy, its Spanish facility was 50% green energy and 50% liquefied natural gas (LNG), and its China factory used no clean energy at all. Trustar helped put the company on track to replace the LNG with biomass by 2023, while introducing a 15% solar component to the China factory’s electricity mix.

“Cosmetics brands represent consumers’ values and identity. Leading brands see sustainability as a key proposition and encourage their suppliers to comply with their environmental targets. As a result, our production process has incorporated and evolved with these standards,” said Shi.

Almost all Axilone’s customers are working towards specific environment, social, and governance (ESG) targets on five-year schedules. This is also a widely-accepted industry trend.

For example, L’Oréal wants 50% of product packaging to be fossil fuel-free – which means recycled or bio-sourced – by 2025; LVMH has set a 2030 deadline for reducing scope-three emissions (indirect emissions through its entire supply chain) by 55% per unit of added value, using 2019 as a baseline, while Estee Lauder is looking to do the same with a 60% reduction from 2018 levels.

Axilone is fortunate that, so far, compliance hasn’t led to significant upward pressure on costs, and there are subsidies from brands and local government incentives that help manage the burden.

“We are not necessarily fixated on short-term cost versus benefits,” Shi added. “However, if you don’t do this, in two or three years, you may lose your competitiveness. Peers also put pressure on one another.”

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Save this article  
  • Send to  
  • Topics
  • Greater China
  • Europe
  • Consumer
  • Industrials
  • China
  • manufacturing
  • beauty & personal care
  • Trustar Capital
  • energy

More on Greater China

hkma-yichen-zhang
Lower valuations, less leverage could drive China PE returns - HKMA Forum
  • Greater China
  • 09 Nov 2023
power-grid-electricity-energy
Energy transition: Getting comfortable
  • Australasia
  • 08 Nov 2023
jean-eric-salata-baring-2019
Q&A: BPEA EQT’s Jean Eric Salata
  • GPs
  • 08 Nov 2023
airport-travel
Asia’s LP landscape: North to south
  • LPs
  • 08 Nov 2023

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs
  • 10 November 2023
housing-house-home-mortgage
Singapore fintech start-up LXA gets $10m seed round

New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.

  • Southeast Asia
  • 10 November 2023
india-rupee-money-nbfc
India's InCred announces $60m round, claims unicorn status

Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”

  • South Asia
  • 10 November 2023
roller-mark-luke-finn
Insight leads $50m round for Australia's Roller

Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.

  • Australasia
  • 10 November 2023
Back to Top
  • About AVCJ
  • Advertise
  • Contacts
  • About ION Analytics
  • Terms of use
  • Privacy policy
  • Group disclaimer
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013