SK Discovery : chemicals and COSMAX Join Hands, Collaborating to Expand Sustainable Material Cosmetic Containers

- Global top-tier ODM company, COSMAX, advocates sustainable material containers to over 1,000 brands

- SK chemicals supports eco-friendly container development and mold manufacturing costs for container manufacturing business partners

SK chemicals is joining forces with COSMAX to promote "sustainable materials" in the global cosmetics market.

On the 25th, SK chemicals (CEO Ahn Jae-hyun) and COSMAX (CEOs Lee Byung-joo and Shim Sang-bae) announced they had signed a Memorandum of Understanding (MOU) for the "construction of a cooperative model for cosmetic container proposals" applying sustainable plastic materials that include recycled materials or those that can be recycled as PET after use.

COSMAX is a global leader in cosmetics ODM (Original Development Manufacturing) with 2022 revenues of 1.6 trillion won (consolidated). ODM is a process where the company develops new products based on its technological prowess, proposes them to brand companies, and ultimately delivers the finished product under the brand of the cosmetics company.

COSMAX, which holds over 1,000 client companies including global giant L'Oreal, provides a "Trend Box," offering complete cosmetic products, including the product contents, container, and concept.

Under this agreement, both companies are committed to actively collaborating on the development of various eco-friendly cosmetic containers using sustainable materials from SK chemicals and proposing these materials and containers to cosmetic brands.

COSMAX plans to use SK chemical's sustainable material containers to produce cosmetic prototypes for customer promotions. The new products contained in eco-friendly cosmetic containers from COSMAX will be introduced to global cosmetic brands at international beauty expos and through the Trend Box. The global cosmetic industry is expanding its use of recycled plastics and eco-friendly materials, and the green material cosmetic containers developed through this collaboration are expected to attract attention from brands.

Furthermore, through the "EUUM" plastic circular ecosystem platform, SK chemicals supports the development of containers and mold manufacturing for COSMAX's cosmetic container production partners. COSMAX plans to expand its lineup of cosmetic containers that can be proposed with sustainable materials and promptly produced upon receiving orders from cosmetic brands.

SK chemical's sustainable materials, which form the core of the plastic circular ecosystem, are composed of materials that use recycled resources or can be recycled as PET. Sustainable materials include the "Ecotria CR series (chemical recycling)" using post-consumer recycled (PCR), the "Ecotria R series (mechanically recycled)," and the "Claro" lineup that consumers can recycle into PET after use.

In particular, two products in the "Ecotria CR series" are low-carbon materials that obtained "EPD Optimization" certification from "UL Solutions" for the first time in the world last year, drawing attention in the eco-friendly container market for cosmetics and food.

According to UK research firm TechNavio, the global cosmetic container market was worth $32.2 billion (approximately KRW 38 trillion) in 2020, and global cosmetic brand owners such as L'Oreal and Estée Lauder have declared a switch to recycled or recyclable materials for cosmetic packaging. This trend forecasts an expansion of the recycled material cosmetic container market for both companies.

Kim Nam-jung, executive director of COSMAX's Domestic Marketing Division, said, "The demand for container materials that can be recycled and reused is increasing, especially among global cosmetic companies. We plan to increase customer satisfaction with high-quality cosmetics and eco-friendly containers made from sustainable materials."

Kim Hyun-seok, head of SK chemicals' Business Development Division, stated, "Interest in so-called green beauty is increasing among domestic and foreign customers due to global warming and environmental pollution," and added, "Together with COSMAX, we will do our best to capture the eco-friendly packaging market by creating a value chain that connects chemical companies, container production, and brands."

# Photo description : On the 24th, SK chemicals and COSMAX signed a "business agreement for the construction of a cooperative model for cosmetic container proposals." Kim Nam-jung, executive director of COSMAX's Domestic Marketing Division (left) and Kim Hyun-seok, Head of Business Development Division at SK chemicals (right) are taking a commemorative photo. Photo credit: SK chemicals

[Glossary]

1. Chemical recycling: A technology that chemically breaks down waste plastics into monomers, which are the raw materials of plastic

2. Copolyester: This is a material with excellent chemical resistance that does not deteriorate or discolor even when in contact with chemical ingredients and is transparent like glass even when thickened, enabling high-end cosmetic containers to be made. Materials include ECOZEN Claro, which uses bio-based raw materials, and ECOTRIA CR, which uses chemically recycled raw materials.

3. PET: It is a highly transparent thermoplastic resin using TPA and EG as raw materials. It accounts for most of the plastic beverage bottles sold on the market.