● SK Bioland completes construction of a next-generation bio cellulose mask pack factory with annual production capacity of 50 million units and begins commercial operation in July 2018

● SK Bioland will have the world’s largest production _ base_ for bio cellulose mask packs after the completion of another factory with the same capacity

● SK Bioland also plans to build more production facilities for natural ingredients of cosmetic products in order to enter the global market through China

 SKC's subsidiary SK Bioland (CEO Lee Geunsik) completed the construction of a third-generation bio cellulose mask pack factory in China. As the largest manufacturer of natural functional materials in Korea, SK Bioland is creating the “Second SK Bioland” in China by expanding its natural material factory for cosmetic products after the completion of the next-generation mask pack factory.

SK Bioland’s next-generation bio cellulose mask packs feature better adhesion and permeability than other products currently available on the market

 SK Bioland held a ceremony on July 28, 2018 at its factory in Haimen, Jiangsu, China to celebrate the completion of SK Bioland Mask Pack Factory. The event was attended by some 130 people including the following: Lee Wanjae, CEO of SKC; Lee Geunsik, CEO of SK Bioland; Oh Junrok, CEO of SKC Solmics; Park Seonwon, consulate general of Korea in Shanghai; high-ranking officials of Haimen; and local customers who are highly interested in the next-generation mask pack.

 The mask pack factory (Haimen Factory 2), which commenced production in July, has annual capacity of about 50 million cellulose mask pack sheets made of microorganism. In 2011, SK Bioland became the first company in the world to mass-produce microorganism biocellulose mask packs, which are third-generation mask packs featuring better adhesion and permeability than the first-generation (fabric) and second-generation (hydrogel) mask packs.

 SK Bioland plans to expand its production facilities in China to increase their annual capacity to 100 million sheets – which is 5 times more than that of the factories in Korea -- within 3 years to become the world's largest bio cellulose factory.

Expansion of ODM to expand value chain in the Chinese mask pack market, which continues to grow at an average of 20% a year

 SK Bioland has been making multilateral efforts to tap into the Chinese market because of its growth potential. According to KOTRA, the size of the Chinese mask pack market stood at about KRW 7 trillion as of 2016, and it continues to grow at an average of 20% year. The leading products in the market are the first- and second-generation mask packs, and the market competition is fierce. Competitors in the market are always on the lookout for new materials for their product differentiation.

  SK Bioland sells mask pack sheets to these companies or supplies them with finished products as OEM (Original Equipment Manufacturer) or ODM (Original Design Manufacturer). While SK Bioland only sells the mask packs as OEM in Korea, it has successfully expanded its value chain by also serving as ODM in China. As ODM, SK Bioland can now expand the pool of customers and realize quantitative growth. Following its business expansion in the Chinese market, SK Bioland will start introducing its products to major global companies.

Second SK Bioland to be _ create_d in China after expansion of natural material factory for cosmetic products

 SK Bioland plans to expand its production facilities for natural extracts for cosmetic products following the completion of a new mask pack factory in China. In addition to Haimen factory 1 with annual production capacity of 900 tons, SK Bioland will build its third factory with annual production capacity of 5,000 ton​s in the first half of next year.

 SK Bioland currently produces Portulaca oleracea extract with great skin-soothing properties, hyaluronic acid with excellent moisturizing effects, and beta glucan that helps improve the immune system and skin health.

 “SK Bioland is the number one producer of natural functional materials, and our Haimen factory is armed with SK Bioland's technology and 13 years’ business experience in China. We will turn it into the 'Second SK Bioland' and increase our market share in China _ base_d on the fact that about 70% of Chinese cosmetic companies are in the neighboring cities of Shanghai and Guangzhou, while also fast-tracking the global marketing process,” said SK Bioland CEO Lee Geunsik.

 On the other hand, in his congratulatory speech, SKC CEO Lee Wanjae stressed that customer value innovation is of utmost importance to SKC and customers. “I think SK Bioland's new mask pack factory will be a milestone for us to make changes in customer response because of its convenient location," he added. [End]

Reference: Status of expansion of SK Bioland’s Haimen Factory and action plan
Shanghai Branch: Identification and R&D of natural materials since 2006

Haimen Factory 1: Production of natural materials for cosmetic products since 2014 (annual production capacity of 900 tons)

Haimen Factory 2: Production of next-generation biocellulose mask packs since June 2018 (50 million sheets per year)

               Factory expansion to be completed within three years (additional 50 million sheets per year, for a total of 100 million sheets per year)

Haimen Factory 3: Construction will begin in the second half of 2019 to produce natural materials for cosmetic products (5,000 tons a year, for a total of  5,900 tons)