In a move to diversify its business portfolio, South Korean refiner, GS Caltex, has inked a promising deal with Summit Cosmetics, a subsidiary of the esteemed Japanese trading firm Sumitomo. The memorandum of understanding (MOU) signed between the two entities paves the way for GS Caltex to supply 2,3-Butanediol, marketed under the brand GreenDiol, to Summit Cosmetics Corp.
The 2,3-Butanediol, a naturally occurring compound sourced from various natural habitats such as living organisms and fermented foods, aligns seamlessly with the growing demand for eco-friendly ingredients in cosmetics production. This versatile substance finds application in the manufacturing of moisturizers and other eco-conscious cosmetic products, catering to the evolving preferences of environmentally conscious consumers.
GS Caltex expressed optimism about the collaboration, citing Summit Cosmetics’ extensive global sales networks. The partnership is expected to fuel the demand for GreenDiol products, amplifying GS Caltex’s presence and market share in the cosmetics industry.
GS Caltex has been supplying 2,3-Butanediol to numerous cosmetics companies across South Korea, the U.S., Europe, and other key markets. The company’s commitment to sustainability is evident in its production process, with 300 tons of bio-based 2,3-Butanediol manufactured annually at its Gunsan plant.
GS Caltex’s strategic foray into the cosmetics ingredient supply chain reflects its forward-thinking approach to business diversification. The company’s robust financial performance in the first quarter, marked by a 36 percent increase in operating profit, underscores the success of its refining margins. As GS Caltex embarks on this new venture, the future looks bright for GreenDiol, poised to make a significant impact in the global cosmetics market.
(Source: The Investor | Korea Daily)
