L’Oréal sold the US location to the SK brand last month for $7.3 million, which Cosmax hopes to fill with 47 full-time employees, 99 part-time employees, as well as additional temps by 2015.
The cosmetics giant had announced it was shutting down its Solon plant and moving its equipment to Kentucky and New Jersey two years ago, leaving the location ripe for the taking (at a profitable price of course).
Cosmax, founded in the 90s, develops skin, hair care and colour cosmetics products which are then retailed under international brand names.
The SK brand currently has 280 employees, three factories, and the equivalent of $5.68 million in capital.
The cosmetics manufacturer also made efforts to boost its presence in the Chinese markets earlier this year with the opening of its third factory in the country.
The new facility in the southern Chinese city of Guangzhou will increase its output capacity in the country amid rising demand over the next three years and is estimated to have seen its sales reach 62 billion won (US$58 million) in China last year, up 51.5% on-year from 40.9 billion won.
South Korean players targeting US markets
Cosmax is now one of many tapping into a growing trend in the West whereby increasingly innovative and sophisticated cosmetic and personal care are becoming increasingly sought after in Western markets, driven by both curiosity and a growing kudos.
Luxury skin care specialist Amarte also announced plans to expand into the US market recently, having signed an agreement with US PR company 5W to give its campaign a boost.
Marketing its cosmetics line on the basis of its anti-aging and rejuvenating qualities, combined with ‘a unique cross-cultural connection’ the product lines are expected to start appearing in select retail outlets soon.
The product line has been developed in Korea and combines eastern philosophy and western dermatology, which Kraffert said the company believes will be one of its selling point in the United States.
Culturally, the product line is based on the Korean tradition for a multi-step skin care programme which is highlighted by the eight products that form the multifaceted regimen based on cleansing, hydrating, rejuvenation and protection.