Global financial services firm Morgan Stanley‘s Asian private equity arm is in talks to buy an 80% stake in Chinese packaging firm HCP in a deal that could value the company at $500m.

The firm was seeking lenders for a $260m loan for the deal, advised by UBS, according to sources familiar with the matter who told Reuters.

HCP has manufacturing facilities in Suzhou and Shanghai, China, as well as offices in France, Hong Kong and Taiwan and produces luxury packaging for L’Oreal and Shiseido with annual sales of around $130m.

In August, Morgan Stanley Private Equity Asia invested $100m in Chinese automotive material maker China XD Plastics.