Tonymoly builds new manufacturing plant in China

By Natasha Spencer

- Last updated on GMT

Tonymoly builds new manufacturing plant in China

Related tags Manufacturing

Korean K-Beauty favourite, Tonymoly, invests 23 bn won (€19.1 mn) in a new production facility in Zhejiang Province, China.

Tonymoly will build the unit through its Chinese cosmetics affiliate Megacos, a manufacturer and seller of cosmetics products, which Tonymoly acquired a 60% share in last year.  

The new site will span a 59,400 area in Pinghu Economic-Technological Development Zone, Jiaxing, Zhejiang Province, China.

Large-scale plans

The cosmetics brands will develop the new facility in a bid to increase its skin care production capacity to 8 million units a year by 2018.

Following its completion in June 2017, the leading K-beauty innovator also aims to produce make up products within three years. The factory will undergo further expansion to up its production capacity to 25 million products.

“TonyMoly will show off Korea’s excellent production technology by carrying out OEM/ODM projects mainly for make up products.”

“Once this production facility is completed, it will speed up manufacturing process while cutting costs,”​ announced a company official.

Megacos has signed agreements with eight local business to provide 161 Korean beauty and cosmetics products to the Chinese marketplace.

Long-term investments and strategic plans are in place to accomplish the brand’s goal of promoting its product lines, Korean innovations and trends to China and appeal directly to its mainstream consumers.

Therefore, the production facility will also get further revamps through future investments. Tonymoly will add additional features to the plant to make it into a comprehensive system that can operate all processes including product development and the entire production line from containers manufacturing to packaging, simultaneously.

“Colour cosmetics are the main items to enter original design manufacturing and original equipment production businesses. TonyMoly will showcase the outstanding production technology of Korea,”​ the official added.

Overseas expansion

The K-beauty brand has witnessed rising sales in 2016 and so is now looking to maximise the appeal of Korea’s colour cosmetics trend by expanding its identity in the US.

Tonymoly’s combined overseas sales from January to September of this year have surpassed the trendsetter’s entire 2015 sales figures.  

At present, the brand features on the shelves of 800 Ulta stores in the US. With its popularity increasing, Tonymoly now wants to implement strategic plans that will boost its US presence further.

It, therefore, plans to up its supply numbers to Ulta, and stock leading cosmetics retailer Sephora with specific product ranges.

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