Blue Power scores Cari-Med soap production contract
Blue Power Group Limited is expanding its capacity with the purchase of an additional production line from Kirk-FP Limited, a member of the Cari-Med Group, which is exiting the manufacturing of soaps to concentrate solely on distribution.
The deal struck between the two former rivals will see Blue Power becoming the co-packer or contracted manufacturer of Kirk-FP’s soap brands.
The two companies became rivals years ago when Kirk-FP acquired the soap brands after the shuttering of operations at Colgate Palmolive in Jamaica and Dominica. These brands include Bomber and Magic laundry soaps, along with Refresh, Castile and Carib Carbolic bath soaps, among others.
Under the arrangement with Kirk-FP, Blue Power will take over the domestic operation as well as the production that was outsourced to international companies in the Eurasia and Latin American regions. Blue Power says it will be working closely with Kirk-FP’s production and quality control team to ensure that the consistency of quality and product availability is maintained or enhanced.
General Manager of Blue Power Group Lisa Kong Lee expects the transition of the Kirk-FP operations to be seamless, saying the additional production can be easily absorbed into the company’s current operations.
“We should be taking up one or two persons from Kirk; that’s the intention. There is no real need expand our shifts or change our production arrangements,” Kong Lee said.
The value of the deal struck with Kirk-FP, a privately held company, was not disclosed. Kong Lee said only that the cost of acquisition of the machinery was “less than 10 per cent of company equity”. Blue Power is a listed company trading on the Jamaica Stock Exchange since 2010. Its last quarterly report for July 20121 estimated shareholder equity at $1.32 billion, while the market value is currently above $1.8 billion.