Cosmax plant in Bang Phli, Bangkok. [Photo provided by Cosmax Inc.]
South Korea’s cosmetics maker Cosmax Inc. announced Monday that its Thailand subsidiary began operation on June 20, putting its total annual output capacity to 1.63 billion units - an amount to meet the demand for one out of four people across the globe.
Cosmax broke ground for the plant located in Bang Phli, near Bangkok in June 2017. The plant commanding an area of 9,000 square meters is capable of producing 30 million skincare and makeup products per annum.
Korean cosmetics companies have been focusing on the Southeast Asian market including Thailand, Indonesia, Myanmar and Malaysia where demand for cosmetics is surging. Global skin care giants like Johnson & Johnson, P&G, and Unilever also have their manufacturing facilities in the country. Cosmax Thailand will supply its products to the country’s top cosmetics firm Mistine that boasts annual sales of more than 1 trillion won ($895 million).
“Thanks to the popularity of Korean pop culture, or Hallyu, Thai consumers have a great interest in Korean cosmetics,” said an official from the company, adding that they also tend to think Korean beauty products have high quality.
The company plans to export products manufactured in Thailand to nearby Buddhist nations like Myanmar, Vietnam, and Laos. At its Indonesian plant, it will produce halal-certified products to target Islamic countries such as Malaysia.
Shares of Cosmax closed Monday 0.62 percent lower at 159,000 won ($142.35).
By Lee Young-wook and Choi Mira
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