Largest in Asia
On Aug. 11, Cosmax, a global cosmetics R&D and production (ODM) company based in Korea, held a ceremony to celebrate the completion of a joint venture factory with Yatsen. It is the largest single cosmetics factory in Asia. With the new plant, Cosmax will expand its presence in the Chinese market.
The new plant is located in Mingzhu Industrial Development Park in the Chonghua District of Guangzhou. It occupies an area of 60,593 square meters. Cosmax established a joint venture (JV) with China’s Yatsen in 2020 with capital of RMB 400 million (US$55.2 million) and promoted the construction of the plant. Yatsen is a leading player in China’s beauty industry with strong color brands such as “Perfect Diary” and “Pink Bear.” Last year, the company generated US$511 million in revenue, and in November 2020 it became the first Chinese cosmetics company to offer stocks on the NASDAQ in the United States.
The new plant is Cosmax’s latest in six years, following the completion of its Shanghai Plant 2 in 2017. It is equipped with resources-saving facilities, including solar power generation, and purification facilities to minimize water and air pollution. It has automated process and logistics systems in place.
Currently, the joint venture plant’s initial production plan is 5 million pieces per month. According to the plan, production will be expanded to 30 million units per month (approximately 400 million units per year). The company expects to employ around 2,500 people at 30 million units.
Partnering with Cosmax, Yatsen Group has a vision to expand its brand portfolio and become a global general cosmetics giant with the construction of this new plant as strong momentum. Cosmax will gradually transfer production volume for Yatsen from its existing Shanghai and Guangzhou plants to the new plant. Cosmax’s existing plants will actively seek new customers such as Korean brands seeking to enter the Chinese market.