Star Combo is considered one of the leaders in the country’s health care industry, being one of nine Australian companies to hold a Therapeutic Goods Administration license to manufacture soft gel capsules.
The Smithfield-based health care products manufacturer recently signed a $5M investment deal with Chinese company Le Pu Medical Technology that will enable it to expand its foothold in the Chinese market.
Le Pu Medical invested in Star Combo’s Costar vitamin range, with the funding to be used for research and development as well as marketing.
Star Combo Non-Executive Chairman Richard Allely said the recent Australian visit by Chinese Premier Li Keqiang further opened the door for investment opportunities between the two countries.
“Star Combo was one of the businesses recognised during Premier Li’s visit as having strong growth potential through open trade,” Mr Allely said.
The company produces 200 million soft capsules annually for the Australian domestic and Asia-Pacific markets across multiple independent brands including Costar, Amax, Green Health Food, Kainan and J&K.
These brands account for 209 products that are sold in pharmacies, international airport and duty-free stores.
Mr Allely said Star Combo received investment offers from at least five Chinese companies as a result of Premier Li’s visit and the associated China-Australia Entrepreneurs Summit.
“There was considerable interest from Chinese financial and strategic investors, who all wanted authentic, established Australian healthcare brands,” he said.
“After much discussion, we reached an agreement with the Chinese listed company Le Pu Medical Technology.”
Mr Allely said there was a growing demand among Chinese consumers demand for natural, healthy products from Australia, particularly given the country’s reputation for food safety and quality.
The 2016-2021 Chinese health care products industry market outlook and investment planning analysis report showed that in 2010 China's health care products industry sales revenue was 56.255 billion yuan.
By 2014, China's health care products market sales had grown to 193.22 billion yuan. Australian vitamin products had 40 per cent of this market share.
“China undoubtedly has the world's largest consumer market,” Mr Allely said. “With an increasingly ageing society, the size of the elderly population in China has grown dramatically.
“Also, the middle class has grown, and people's attention to health care has increased, which has increased the demand for vitamins and supplements.
“With the development of free trade between China and Australia, China’s demand for Australian-manufactured vitamin and supplement products is set to explode over the next five years.
“This represents a great opportunity for Australian companies, which Star Combo has embraced.”
Visit: www.starcombo.com.au
