AmorePacific to complete second cosmetics facility in China by 2014

Cosmetics manufacturer AmorePacific is planning to complete construction of its second cosmetics facility in China by 2014, in an attempt to expand its capacity in the world’s second largest economy.

According to the South Korea-based firm, the facility, which is currently under construction in Shanghai, is expected to manufacture CNY1trillion ($905mn) worth cosmetics products annually after its completion, reported yonhapnews.co.kr.

The firm’s s first facility is located in Shanghai, which produces some CNY100bn ($15.89bn) worth of cosmetics annually.

The firm said the new facility will help it reach sales mark of CNY700bn ($111.21bn) in China by 2015.

AmorePacific’s Chinese sales in 2011 surged 33.5% annually to CNY190.8bn($30.31bn), up from CNY142.9bn($22.7bn) in the year 2010.

The firm attributed the strong growth in China to its popular flagship brands Laneige and Mamonde.

According to the firm, the growth in China is also expected to be bolstered by high-end Sulwhasoo products and masstige brand Innisfree.

China, where sales are burgeoning, has become a key market for AmorePacific, as it is the second-largest cosmetics market in Asia after Japan .

AmorePacific occupies the 14th position among the cosmetics manufacturers in China, which is supported by the growing consumers’ demand there for the South Korean cosmetics products.

Market researcher Euromonitor International expects the cosmetics market in China to reach $40.4bn by 2015.