April 25, 2024

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[THE INVESTOR] Cosmax announced on Jan. 19 that it is fully equipped to tackle the Chinese makeup market with the completion of its factory having a capacity of 200 million units.

Along with the newly completed factory, Cosmax currently runs a plant in Shanghai and Guangzhou that can produce a combined 350 million units, which gives the company an annual production capacity of 550 million units in China alone. Combined, this pushes the company’s global production capacity over the 1 billion unit mark, making Cosmax the largest cosmetics manufacturer in the world.

 

Cosmax Chairman Lee Kyung-soo

“Cosmax China will now be able to meet customer needs and promptly respond to market fluctuations through a stable supply of products in the ever-growing Chinese color cosmetics market. This will provide momentum for China’s cosmetics industry and will also enable domestic customers to access the Chinese market directly,” said Cosmax Chairman Lee Kyung-soo.

Cosmax was the first Korean cosmetics ODM firm to enter China in 2004. Over the past 13 years, the company has grown at an average annual growth rate of over 40 percent and more than 85 percent of its sales now come from the market.

The company is also receiving firm support from the Shanghai government, which is providing incentives such as employment creation assistance for new plants, new employment training, and various tax rebates. As further incentives, the Chinese Ministry of Finance also abolished its consumption tax, which was 30 percent, on the cosmetics industry in October 2016.

By Alex Lee (theinvestor@heraldcorp.com)