Investment of 56 Billion KRW in New Factory
Rapid Growth in Local Cosmetics Market
Cosmax Thailand Achieves 51% Average Annual Sales Growth
Cosmax, a cosmetics original design manufacturing (ODM) company, is starting construction of a new factory at its Thailand subsidiary. Cosmax plans to expand its penetration into the Southeast Asian market through the new Thailand factory.
Cosmax announced on the 2nd that it held a groundbreaking ceremony for the new factory in Bang Phli, Thailand, on the 27th of last month. The new Thailand factory will be built with an investment of 1.5 billion baht (approximately 56 billion KRW), about four times the size of the existing Thailand factory. It will have a total floor area of 35,940 ㎥, four stories above ground, and is scheduled to officially start operations in September 2026.
Once the new factory begins operation, the production capacity of Cosmax Thailand will increase up to three times compared to the current level. The annual production capacity (CAPA) of the new factory is approximately 230 million units.
The Thailand factory was designed as a smart eco-friendly factory considering environmental impact and production efficiency. It is equipped with a carbon filter system to reduce volatile organic compounds (VOCs) emissions, as well as smart wastewater treatment and recycling systems. By implementing the 'Zero Water Waste' policy, it minimizes environmental impact by recycling wastewater generated during the production process.
Cosmax pushed forward with the construction of this new factory in line with the rapid growth of the Southeast Asian market. Thailand is the largest cosmetics market in the ASEAN region, with recent increases in cosmetics demand and new brand launches centered around influencers. According to data from the Korea Trade-Investment Promotion Agency, the size of the Thai cosmetics market is expected to reach 812 million USD this year, an 11.5% increase compared to the previous year.
Accordingly, Cosmax plans to continue the growth of its Thailand subsidiary through the new factory. Last year, Cosmax Thailand's sales reached 43.5 billion KRW, a 70.4% increase compared to the previous year. The average growth rate over the past three years is 51%.
Kang Mingu, head of Cosmax Thailand, emphasized, "Through this expansion, we will be able to meet the diverse customer demands in the Southeast Asian region and establish ourselves as a K-beauty platform. We will strengthen our manufacturing capabilities in line with the rapidly growing demand in the Thai cosmetics market and make Thailand a beauty manufacturing hub in Southeast Asia."
Cosmax operates 19 production factories in five countries worldwide, including Korea, China (Shanghai and Guangzhou), the United States, Indonesia, and Thailand.
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