On the 2nd, the global cosmetics Original Design Manufacturer (ODM) corporation COSMAX announced that it will begin construction of a new factory in its Thai subsidiary.
COSMAX held a groundbreaking ceremony for the new factory in Bangplee, Thailand, on the 27th of last month. The new factory in Thailand will be built with an investment of 1.5 billion baht (approximately 560 million won) and will occupy about four times the area of the existing Thai factory.
The new factory will have a total floor area of 35,940 square meters and will consist of four stories, with operations expected to formally commence in September 2026.
Once the new factory starts operating, COSMAX's production capacity in Thailand will increase by up to three times compared to the existing capacity. The annual production capacity (CAPA) of the new factory is estimated to be approximately 230 million units.
The new factory in Thailand is designed as a smart eco-friendly factory, considering environmental impact and production efficiency.
It has been equipped with a carbon filter system to reduce volatile organic compounds (VOCs) emissions, as well as smart wastewater treatment and recycling systems.
Additionally, it will implement a "Zero Water Waste" policy to recycle wastewater generated in the production process and strengthen waste separation and recycling efforts to minimize environmental impact.
Furthermore, it will comply with international quality standards such as ISO 22716 (Good Manufacturing Practices for Cosmetics).
It has obtained certifications from the Thai Food and Drug Administration, halal, and vegan standards to meet safety and quality criteria while responding to various customer demands.
COSMAX has promoted the construction of this new factory to keep pace with the rapid growth of the Southeast Asian market, including Thailand.
Thailand, the number one cosmetics market in the ASEAN region, is experiencing an increase in cosmetics demand and the launch of new brands focusing on influencers.
According to the Korea Trade-Investment Promotion Agency (KOTRA), the scale of the Thai cosmetics market is expected to reach $812 million (approximately 1.19 trillion won) this year, marking an 11.5% increase compared to 2023.
As a result, COSMAX plans to continue the growth trend of its Thai subsidiary through product innovation based on high-quality manufacturing processes and advanced technology at the new factory.
Last year, COSMAX Thailand's revenue was 43.5 billion won, a 70.4% increase compared to the previous year. The average growth rate over the past three years since 2022 has reached 51%.