Cosmax buys L’Oréal production plant

Published: 10-May-2013

After recently acquiring an Indonesian production plant from L’Oréal, South Korean OEM manufacturer Cosmax has bought another L’Oréal cosmetics plant in the US


Cosmax, a South Korean cosmetic material supplier and OEM manufacturer, based in Hwaseong City, has bought a cosmetics plant in the US from L’Oréal. The plant, in Solon, near Cleveland, is currently owned by the L’Oréal Group and is said to be capable of producing 100 million foundation and colour cosmetics a year. Korean media reported a purchase price of US$11m although the sale is expected to finalise by the end of 2013.

Cosmax aims to produce powder products in the latter part of this year, followed by skin care products. According to the company, making cosmetics in the US rather than Korea will allow it to save transportation costs and enhance its products with the prestige of being ‘made in the USA’. Cosmax expects the new plant will lead to more exports to Latin American and European markets.

L’Oréal reportedly wants Cosmax to supply all of the plant’s output to it. On this basis, Cosmax will achieve KRW20bn sales revenue from the plant by 2014, followed by KRW60bn in 2015.

Meanwhile, Cosmax is shortly due to start production at a new plant in Guangzhou, China. The company also recently acquired an Indonesian production plant, again from L’Oréal.

You may also like