Cosmecca Korea said on the 5th it will acquire land and buildings for a factory in Heungdeok District, Cheongju, North Chungcheong Province, for 64 billion won. The purchase price equals 10.13% of the 631.8 billion won asset aggregates on a consolidation basis at the end of last year.
Cosmecca Korea expects that securing this production base will allow it to respond more quickly and stably to increasing orders from domestic and overseas clients. The company also expects positive effects for attracting new brands, as well as expanding volumes from existing clients.
Cosmecca Korea's annual production capacity is currently about 1.3 billion units. The company plans to expand its production capability through this factory acquisition and establish a foundation to respond to rising global demand going forward. It also plans to broaden its portfolio by adding hydrogel masks, suncare, and premium hair and body care to its existing manufacturing strength centered on skincare.
Earlier, Cosmecca Korea ramped up its domestic production capacity once by bringing a new Cheongju plant online last year. The plant has an annual production capacity of 66 million units. Four of its 15 production lines are dedicated to hydrogel masks, enabling the company to meet demand for mask packs that are gaining popularity overseas.
A Cosmecca Korea official said, "As the global growth of K-beauty brands continues, the core of competitiveness in cosmetics manufacturing is being distilled to a stable production base and rapid supply responsiveness," adding, "Through this investment, we will respond more systematically to expanding global customer demand and further solidify our mid- to long-term growth base."