THE WHAT? Cosmax has announced the closure of its US factory, according to a report published by The Korea Economic Daily.
THE DETAILS The New Jersey facility will cease to operate from Q1 2023. The company purchased the plant from L’Oréal in 2014 for KRW15 billion but it has suffered from over-capacity since and reported a net loss of KRW27.3 billion in 2021.
THE WHY? The plant’s closure will improve the K-beauty firm’s profitability, per The Korea Economic Daily, with shares rising some 9 percent on the back of the news.