Chinese firm ShyaHsin Packaging invests €16.86 million in Portuguese cosmetics packaging factory

Chinese company ShyaHsin Packaging will invest 16.86 million euros to establish a production facility for high-quality cosmetics packaging in Portugal, according to AICEP — Agência para o Investimento e Comércio Externo de Portugal, which adds that the Kunshan, China-based company may also obtain tax benefits, as it will sign an investment contract with AICEP.

The Portuguese factory of the Chinese company, which specialises in the development, design and manufacture of packaging for mascara, lip gloss, lipsticks, compact powder, brushes and nail varnish, and provides complete solutions for the cosmetics industry, is already at an advanced stage of construction in Maceira, with completion scheduled for October 31, 2026, and will benefit from a 17% investment incentive, fully eligible for European funding.

This investment is considered to be of “strategic interest to the national economy or to a particular region,” as set out in an order by the Minister for the Economy and Territorial Cohesion on August 5, and is also deemed to “meet the necessary conditions for the granting of financial incentives,” following an analysis by AICEP.

The project, which will receive 2.86 million euros in support from the Compete 2030 programme, “aims to set up an SHP Group production unit in Portugal to manufacture cosmetics packaging for the high-end segment,” according to the project description.

“The purpose of this production unit is to streamline the supply of products to the European market, while at the same time being a fundamental part of SHP’s efforts to position itself as a global leader in the sector,” the same description reads, as reported by ECO.

The SHP Group, created in 1970, operates four factories worldwide, two in China and two in Mexico, and says it has specialised in producing cosmetics packaging for more than 50 years.

Last January, the Mayor of Leiria (CML), Gonçalo Lopes, announced that the Chinese company would set up, in the former Dexprom factory building, “one of the largest cosmetics packaging factories,” which will serve “the main cosmetics companies”, notably L’Oréal, Diário de Leiria reported at the time.