Cosmax to construct its third cosmetics facility in China by 2015

South Korean cosmetic goods manufacturer Cosmax is planning to construct its third cosmetics facility in China by 2015, to improve its production capacity in one of the world’s fastest growing cosmetics markets.

The firm is planning to build a new facility in the southern Chinese city of Guangzhou in a span of three years , with an aim to increase its output capacity in the country to meet the rising demand.

Cosmax has recently completed the expansion of its existing production line in Shanghai, the company’s first plant in China.

Apart from the new planned facility, the firm has also has been operating a manufacturing unit in Guangzhou region.

Cosmax is an original design manufacturer (ODM), and also a middle market supplier of cosmetic products to the manufacturers, has recorded sales of CNY62bn ($9.92bn ) in China in 2012, a growth of 51.5% year-on-year from CNY40.9bn ($6.52bn).

The firm is planning to increase its Chinese sales by 30% to reach CNY87.5bn ($13.94bn) in 2013.

Cosmax, through original equipment manufacturing or on-demand manufacturing arrangements, also supplied cosmetics products to major cosmetic companies such as French firm L’Oreal and US health care product company Johnson & Johnson.

The firm, which stepped into Chinese market in 2004, currently gains an approximate 25% of its operating profit from this region.

Cosmax’s overall business in China is majorly driven by its relations with local firms in the region.

The firm’s subsidiary in the region is well known by the local companies, which account for 80% of their clients in mainland China.