The deal sees Schott strengthen its presence in China, and builds on its established pharmaceutical operations in other emerging markets such as Brazil, Russia and India, where it maintains similar facilities.
Udo Ungehauer, chairman of Schott's board of management, explained the reasoning behind the partnership, and how the new deal represented part of a wider strategy aimed at capitalising on the burgeoning Chinese market.
“With the formation of this joint venture between Schott and Xinkang, two strong partners are joining forces,” he said.
“By combining Xinkang’s knowledge of the local market with Schott’s technological expertise, we will be able to supply Chinese pharmaceutical companies with high-quality packaging products even more effectively in the future.”
The joint enterprise will make use of Schott's existing manufacturing plant in Suzhou, Jiangsu province, and a further site in Jinyun, Zheijiang Province.
Schott's 2500 sq m Suzhou plant opened in 2008 and specialises in the production of high-end glass packaging solutions. It was the first of its kind to be opened by a global manufacturer in the country.
The plant already serves both the Chinese domestic market and multinational pharmaceutical companies with what the company refers to as 'premium products.'
Ungehauer said striking a partnership with an established Chinese manufacturer such as Xinkang served to highlight the company's commitment to building and developing closer ties with the local market.
“By manufacturing pharmaceutical packaging in Suzhou at international quality levels, we are a strong partner to the Chinese pharmaceutical industry on their way toward reaching international quality standards,” he said.
Industry analysts claim China is destined to become the world's largest pharmaceutical market by 2050, and though the glass packaging sector is still dominated by low-priced products, Schott said it expected rapid development to drive up demand for higher quality services.