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Cosmax opens 3rd factory in China, ups capacity to 550 million units

Collected: 2017.01.20

Distributed: 2017.01.23

Source: Go Direct

From left, Chen Huawen, Deputy Director of Fengxian District; Hua Yuan, Deputy Party secretary, deputy director and acting director of Fengxian District; Cosmax Group Chairman Lee Kyung-soo, Cosmax BTI Inc. Chairman Seo Seong-seok, Korean Consul general in Shanghai Han Suk-hee and Cosmax China Inc. chief executive Choi Kyung [Photo: Cosmax Inc.]

Cosmax Inc., a South Korean cosmetics material developer and original design manufacturer (ODM), opened up its third factory in China in Shanghai to up its annual output capacity to 550 million units.

The new color cosmetics factory in Fengxian District, Shanghai, China, stands on a floor space of 37,752 square meters capable of turning out 200 million beauty products a year.

Together with the first factory in Shanghai with annual capacity of 250 million and another one in Guangzhou with a 100 million capacity, the company is now capable of producing 550 million cosmetic products from China. It is the largest output achieved by a cosmetics ODM in a single market. Cosmax can now churn out over 1 billion products from overseas operations in China, the U.S. and Indonesia.

Cosmax became the first among ODMs to make a foray into the Chinese beauty market in 2004. Its Chinese operation has been growing at an average rate of 40 percent ever since. Its strategy to separate production of skincare and makeup products in Shanghai and Guangzhou has worked. Over 85 percent of its total shipments go to consumers in China.

China has the world’s second largest cosmetics market following the U.S. Beijing removed a 30 percent consumption tax on cosmetic products last October, further helping products made in China.

Cosmax’s Chinese unit Cosmax China Inc. will be working closely with Indonesian counterpart to expand share in the Southeast Asian market where beauty demand has been on an upsurge.

By Lee Yong-gun

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