The facility, which was acquired for KRW32bn ($26.3m), has a total floor area of 14,231 square metres and the capacity to produce 250 million sheet masks annually. According to the Korea Economic Daily, this makes it the largest sheet mask factory in Korea.
This investment will increase Kolmask’s production to 400 million units annually. The firm said this acquisition is key to becoming the leading sheet mask manufacture in the world within the next five years.
Sheet mask leader
The deal will give Kolmask access to Jayjun’s distribution channels in China, allowing it to reach new Chinese customers.
Per the agreement, Kolmask will also continue to manufacture Jayjun’s existing products, securing a line of ‘stable revenue’ for the company.
According to Jayjun, it is one of the top sheet masks brands in China. Last year, the brand signed on top Chinese actress Fan Bing Bing as its brand ambassador. In 2017, the brand recorded RMB35.2m ($4.9m) on Tmall during the Singles’ Day Shopping Festival.
With an increased production capability, Kolmask said it will be able to expand into the South East Asian and North American markets.
Established in 2017, Kolmask recorded KRW73.5bn ($62.2m) in sales in one year.
Its parent company, Kolmar, claims to be one of the biggest ODM companies in the world with 63% of the business is in cosmetics. In 2018, the company registered KRW1.36tn ($1.2bn) in sales.
Investments into pharma
In addition, Kolmar also announced that it has secured a 57% stake in TKM Co, the biopharmaceutical arm of Daehan Sugar, becoming the firm’s largest shareholder.
TKM mainly manufactures and distributes erythropoietin (EPO), a hormone that produces red blood cells, for the treatment of renal anaemia.
Daehan Sugar also announced that it will establish a joint venture with Kolmar Korea to strengthen its competitiveness.
Its investment into TKM will allow Kolmar to expand its biopharmaceutical business, which makes up 37% of the company.
Additionally, it will help the company and find ways to “create synergy” with CJ Healthcare, which it acquired in April last year.
“With these investments, we have set the stage to become the world's number one mask pack manufacturer and expanded our biopharmaceutical business,” said the company.
“By making aggressive investments, we will achieve a balanced growth between cosmetics, pharmaceuticals, and functional health foods and become a global beauty and healthcare company.”
