The global cosmetics research, development and production company has held a ceremony to celebrate the formal acquisition of US cosmetics producer, Nuworld.
The ceremony was held at the headquarters of Cosmax Pangyo and was attended by Lee Kyung-su, the chairman of Cosmax Group and Jonathan Rosenbaum, CEO, Nuworld, among others, the company revealed in a recent press release.
Strength of experience
Established in 1991, Nuworld is a cosmetics manufacturing company with a plant of around 13,223㎡ in New Jersey, US, located approximately 40 km from the current Cosmax New Jersey Institute.
Cosmax revealed how its newly-acquired company achieved sales of US $105 mn (€89 mn) in 2016 and anticipates growth of approximately 10% this year.
Hailed for its environmentally-friendly factories, the 1000-strong workforce predominantly produces colour products, nails and perfumes.
Cosmax “plans to take the lead in the US cosmetics manufacturing market by strengthening its local production facilities, research and marketing organisation”, the company added.
This is the second time Cosmax has entered into the acquisition process since 2013 when L'Oreal Group bought the Ohio-based Solon manufacturing unit.
Two company heads are better than one
“By combining the two companies, we will reinforce our sales force and achieve sales of over 200 billion won in the US in 2018 I expect to do it,” Yoo Suk-min, Vice President of Cosmax USA, anticipated.
Emphasising its high expectations for the partnership, Suk-min went on: "We expect to see diverse synergies between the two companies due to the use of manpower pool and by 2019, we will jump to No. 1 in the cosmetics ODM industry with sales of about KRW 300 bn (€232 mn)."
"Our production, quality know-how, and the technology and high level of customer service we have are highly anticipated for future growth," added Sueet Dalek from Nuworld. "We promised active cooperation."
Along with ODM, Nuworld is forging ahead with original brand manufacturing (OBM). At present, the company’s Hard Candy brand operates exclusively at around 3,000 WalMart stores in the US and Canada.
Market powerhouses: US and Korea
Commenting on consumer demands and the perceiving achievement among Korean brands, Lee Kyung-su, the president of Cosmax, highlighted: "I feel every time I visit the local market that the local brands are expecting a lot of attention to the Korean Beauty.”
"In order to meet the expectations of global customers, we will make synergy with NuWorld by faithfulness to the most basic things such as R&D and production,” Kyung-su expressed.
As Cosmax America hopes to realise its strategy of increasing the efficiency of its Solon production plant in Ohio and the integrated production base of the Nuworld unit in New Jersey, Cosmax and Nuworld have a number of long-term goals.
Together, they hope to “preempt the US cosmetics ODM market early, diversify business models (OBM), to reduce manufacturing costs by securing research and manufacturing infrastructure, and to expand exports by strengthening customer service”, the company went on to say.