Ch3. From a mother’s kitchen to the world’s kitchen - AMOREPACIFIC STORIES

2015.05.08

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https://stories.amorepacific.com/en/ch3-from-a-mothers-kit

Ch3. From a mother's kitchen to the world's kitchen

HISTORY
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Telling a visual story of AMOREPACIFIC's 70-year history of creating Asian Beauty

70-year journey to beauty

Chapter 3. From a mother's kitchen to the world's kitchen

Products succeed or fail by their quality. No matter how well products are wrapped, they cannot win the heart of customers unless they are of good quality.

And quality is of paramount importance when it comes to cosmetics destined to deliver the absolute value of humanity – beauty . AMOREPACIFIC Group has always worked hard at production sites to deliver products of absolute quality and present beautiful health to customers.

In this chapter, we look at how SCM (Supply Chain Management) has changed in AMOREPACIFIC Group.

A small mother's kitchen

Yun Dok-jeong, mother of the founder Suh Sung-whan, made camellia oil and sold it for the beauty of Korean women. But, back then, there was no standard manufacturing method and she used sot (Korean traditional pot made of cast iron) and a large bowl to make the oil in the kitchen. She bought camellia trees grown on the southern coast hundreds of miles away from Gaeseong by using a packman to cross the country. It was from these trees that she took the ingredients for her camellia oil.

Production Site in Huam-dong

After the Korean War ended in an armistice, the founder Suh Sung-whan built an office and plant in Huam-dong, Seoul, Korea. At that time, all products were hand-made. Everyone lived under the same roof like a family and worked together. As a result, products such as ABC Vanishing Cream were produced and much loved by customers.

Yongsan Production Site ushered in the age of automation

AMOREPACIFIC moved its HQ building and plant to Yongsan, Seoul, Korea and, in doing so, enriched its substance. Instead of using an iron pot to make cream, stainless containers were brought in. Ice from the Han River was replaced with a fridge – and a cream-mixing machine was installed. Production facilities became automated and ingredients such as glycerin, liquid paraffin and stearic acid were developed to raise product transparency. And, it not only improved the quality of products, but also succeeded in expanding business, gathering momentum from mass-production.

Airspun Grinding Machine drives improvements in product quality

In 1958, a huge 4-tone, 12-metre tall machine requiring 35hp (horsepower) was installed on Yongsan Production Site, occupying the basement to the 3rd floor. It was the first Airspun Grinding Machine in Asia. No one else in Asia had a high-performance Airspun Grinding Machine developed based on the same principle as a pilotless plane during World War II. AMOREPACIFIC used this Airspun Grinding Machine to make ABC Loose Face Powder, Coty Loose Face Powder and Lido Loose Face Powder. Thanks to the Airspun Grinding Machine, the quality of products became far better than it was before. The Airspun Grinding Machine, a so-called production innovation, contributed to taking the technologies of AMOREPACIFIC to a higher level. It also signaled the modernization of its production facilities.

Yeongdeungpo Production Site with the largest automated facility in Korea

The founder Suh Sung-whan bought land measuring 23,140.4959m2 (7,000 pyeong) in Yeongdeungpo, Seoul, Korea and, in 1962, held a new ground-breaking ceremony. The Yeongdeungpo Production Site of AMOREPACIFIC was completed in November of the same year. It was rare to see such a large-scale production site – equipped with all kinds of automated facilities. The site was extended in 1969 and, until its move to Suwon, Korea in 1987, it symbolized the Korean cosmetics industry.

AMOREPACIFIC recognized by the Korean government

In 1967, AMOREPACIFIC made headline news as a government-designated ingredient developer with a KRW 130 million-worth loan granted by the Korean government to support the production of castor oil, liquid paraffin and stearic acid, after it was chosen as best practice in the cosmetics industry. Plus, the Korean government approved a USD 735,000-worth loan from the American FNCB (First National City bank). This was all because AMOREPACIFIC had the highest credit rating both in and out of Korea. AMOREPACIFIC was able to bring in the newest experimental equipment and production facilities earlier than it had planned, while full support from the government allowed it to have a stronger competitive edge than rivals.

Glass-manufacturing plant producing cosmetics bottles

AMOREPACIFIC built a new glass-manufacturing plant in Anyang, Gyeonggi-do, Korea under technical cooperation with a Japanese glass manufacturer. With the construction of the glass-manufacturing plant, AMOREPACIFIC was able to show that packaging materials are not an accessory, but a part comprising the product. The cosmetics products of AMOREPACIFIC offered new joy to consumers thanks to being packaged in transparent glass produced in the glass-manufacturing plant.

Suwon Skincare Production Site and its modern facilities

AMOREPACIFIC moved the production site from Yeongdeungpo to Yongin, Korea, developed and installed its own manufacturing management system for better product quality and used a computer system to control the end-to-end process, involving ingredients and manufacturing in order to minimize errors. And, in 1996, Suwon Skincare Production Site began building an environmental management system, which was awarded ISO14001 accreditation from the International Organization for Standardization. What's more, it was designated as an eco-friendly company by the Korean Ministry of Environment.
AMOREPACIFIC enlarged and extended its production sites in Suwon, Daejeon, Gimcheon and Jincheon, Korea and, in doing so, set out the framework of its 'Campus.'

MASTER21 movement

In July 1992, AMOREPACIFIC kicked off MASTER21 in the main hall of the Skincare Production Site. MASTER21 is a movement whose name stands for Man, Machinery, And Space, Technology Efficiency Revolution. Its goal is to bring together people, machinery, space and technology in an efficient manner to improve productivity. MASTER21 saw great improvements in productivity, cost-savings and workplace efficiency. And, through this innovation movement, AMOREPACIFIC built its SCM Unit into part of its core competence.

Debut in the home of cosmetics with Chartres Production Site, France

From the late 1980s, AMOREPACIFIC worked on the construction of a production site in France, famous for being the home of cosmetics. In 1990, it bought a plant in Chartres, France and remodeled it into its own production site, named PBS (Parfums Beaute de Suh S.A).
Then, in 2004, AMOREPACIFIC quintupled production scale and made it into the Chartres Production Site of today with the most advanced facilities. Chartres Production Site produces perfume products such as Lolita Lempicka and delivers the scent of beauty across Europe.

Osan Beauty Campus with high-tech systems on a global scale

AMOREPACIFIC Beauty Campus was built in Osan, Gyeonggi-do, Korea. Boasting world-scale and high-tech systems, it is a central production site that integrated Suwon Skincare Production Site with Gimcheon Makeup Production Site and all the distribution centers scattered around Korea. Osan Beauty Campus proved a springboard for AMOREPACIFIC as it worked toward delivering the best-quality products to customers and following the vocation of spreading Asian beauty all around the world.

Beauty Campus Shanghai, the hub for operations in China

With the plant in Shenyang, China, which was built in 1995, and its Shanghai plant built in 2002, AMOREPACIFIC has been able to offer products to Chinese customers through local production. And Beauty Campus Shanghai, which was completed in October 2014, is playing the role of a hub for production, research and distribution in China. Equipped with the best facilities and working environment in the cosmetics industry, Beauty Campus Shanghai is dedicated to the role of essential production base for the mid-term global business strategy of AMOREPACIFIC – that is, accelerating the growth of its business in China.

It is the vocation of SCM Unit to optimize people, materials, technologies and space to ensure the proper delivery of beauty that AMOREPACIFIC wishes to give to customers.

The dream of beauty began in a mother's kitchen filled with wisdom and sincere effort is being realized in the world's kitchen packed with high technologies and innovative systems.

AMOREPACIFIC Group will not stop its efforts to present beauty to people around the world with best-quality products.

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