Cosmax has embarked on full-scale post-merger integration (PMI) just three months after acquiring the Italian cosmetics Original Design Manufacturer (ODM) company, Keminova. Beyond securing production bases, the company is rapidly solidifying its foundation for European business by reorganizing its R&D structure and launching cultural fusion education programs between the two countries. This is interpreted as an ambition to further strengthen global K-beauty manufacturing competitiveness by leveraging the “Made in Italy” production system. According to Keminova on the 6th, in its recently released “Impact Report” it formalized strategies for global business expansion and organizational innovation based on its partnership with Cosmax. Cosmax signed a Stock Purchase Agreement (SPA) in February to acquire a 51% stake in Keminova, and finalized management control upon completing the acquisition in April. This marks the first time Cosmax has established a direct production base in Europe, the home of cosmetics. Through this, the company has laid the foundation to supply Italian cosmetics to global clients. Since then, Cosmax has been rapidly moving to integrate infrastructure and secure the value chain through Keminova. As soon as the equity acquisition was finalized, the company completely reorganized its R&D organization and launched joint research projects utilizing eco-friendly and sustainable raw materials, which are Cosmax's strengths. The strategy is to enhance product competitiveness by jointly developing eco-friendly raw materials and innovative materials, while simultaneously strengthening its ability to respond to global clients. In addition, following the launch of the “Korea-Italy Cultural Understanding Program” for all employees, the company plans to further enhance technology exchange by establishing a joint education system called the “Keminova Academy” in the future. Local management is also expressing anticipation for the transplantation of Cosmax's global infrastructure. Mauro Franzoni, CEO of Keminova, emphasized in a report that "the strategic deal with Cosmax is not merely a change in equity, but a choice for the future," adding that "it will serve as a foundation to advance technological and innovative capabilities within the Italian industrial ecosystem to the next level". This acquisition is regarded as a decisive move for Cosmax to expand its global reach. This is because it has instantly secured premium infrastructure and local networks in Europe, the home of cosmetics. Keminova, located in the "Beauty Valley" cosmetics industry cluster in Brescia, Italy, is a company that has accumulated local certification systems and manufacturing know-how in the fields of dermacosmetics, hair care, and medical devices. It has already secured a solid base of local clients, including prominent derma brands and pharmaceutical companies. Analysts suggest that if synergies with Cosmax, which possesses global manufacturing competitiveness, fully materialize, the company could rapidly expand its dominance in the stagnant European cosmetics market. Given the significant premium symbolism of "Made in Italy" in the global beauty market, Cosmax is expected to concentrate its efforts on attracting major local brand companies using Keminova as a base. Furthermore, it is anticipated that the company will drive external growth by absorbing the local production demand from promising domestic K-beauty brands aiming to enter the European market. (ICE SEOUL)

Fonte notizia: THe Guru Global News