KOSÉ Launches Minami Alps Factory on 80th Anniversary, Promoting Local Energy Consumption Model for Zero CO2 Emissions in Manufacturing ~Aiming to Switch Heat Source to 100% Hydrogen by 2040~

KOSÉ Holdings Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President and Representative Director: Koichi Shibuzawa) announced that its Minami Alps Factory, the third production base in Japan for KOSÉ, will commence full operations on July 9, 2026, in Minami Alps City, Yamanashi Prefecture. A commencement ceremony was held on the same day. The factory will maximize the use of Yamanashi Prefecture's abundant water resources in cosmetic production, and promote an "energy local production for local consumption model" by adopting "green hydrogen" (Note 1) produced in Yamanashi Prefecture with zero CO2 emissions, and electricity from prefectural hydropower generation.

To accelerate further global growth in pursuit of its mid-to-long-term vision "Vision for Lifelong Beauty Partner - Milestone 2030" (Note 2), the company constructed this factory as part of strengthening its production system. Based on the philosophy that "finding a factory is finding a water source," KOSÉ established its base in Yamanashi Prefecture, blessed with the clear water essential for cosmetic manufacturing. In line with its corporate message "Wisdom for Life, for the Earth," the factory will operate as a sustainable facility where people and the natural environment coexist. Concurrently, to mark the commencement of operations, environmental initiatives have been further strengthened, and the water story "Water, Life, Beauty" (Note 3) has been formulated and released as a core part of its environmental strategy.

A Sustainable Factory Where People and the Natural Environment Coexist

The factory will actively engage in water resource circulation within its premises and promote an "energy local production for local consumption model" utilizing Yamanashi Prefecture's rich water resources. Thermal energy, indispensable for cosmetic manufacturing, will utilize green hydrogen produced at the Yonekura-yama Power Storage Technology Research Site through Yamanashi Prefecture's "Yamanashi Model P2G System" (Note 4). The plan is to gradually transition from conventional fossil fuels to 100% hydrogen by 2040. Furthermore, the factory adopts "CO2-free electricity" derived from prefectural hydropower generation and also generates its own electricity through solar power, leveraging Yamanashi Prefecture's long sunshine hours. Notably, this marks the first instance nationwide where all energy used for construction work is covered by CO2-free electricity from hydropower generation.

Hydrogen Trailer

Additionally, the factory achieves efficient and stable high-quality manufacturing by balancing labor saving and reduced workload through automation of in-factory logistics, and by enabling anyone to replicate the skills of experienced workers using digital technology. Upholding "Human First," which prioritizes people, a safe and highly efficient production system has been established through mechanization of arduous tasks and the introduction of assistive equipment.

The factory has been conducting research on the origin of water collected on its premises in collaboration with Yamanashi University. At the commencement ceremony, the latest production lines were unveiled, along with research presentations from the university. Furthermore, around 3 PM today, the first products manufactured at this factory were loaded onto trucks for shipment nationwide.

Kazutoshi Kobayashi, Chairman and Group CEO, KOSÉ Holdings Co., Ltd.

Today, with the warm support of all stakeholders, the Minami Alps Factory has reached its operational day. Guided by our long-held belief that "finding a factory is finding a water source," we have spent over a decade in deliberation and finally arrived at this location in Minami Alps City, Yamanashi Prefecture. It is deeply moving to be able to operate this factory on our 80th anniversary, and we are delighted to be able to deliver products to the world from this location. Water is the most crucial raw material in cosmetic manufacturing and a vital asset that supports local life and nature. In gratitude for this blessing of water and with a commitment to passing it on to the future, we have released the water story "Water, Life, Beauty." The Minami Alps Factory is the frontline base embodying our sentiments towards "water." Together with the local community, we will contribute to the realization of a sustainable society and deliver new value to the world from this region.

Koichi Shibuzawa, President and Group COO, KOSÉ Holdings Co., Ltd.

I would like to express my sincere gratitude to all stakeholders who have supported our company in various ways, as we celebrate the commencement of operations at the Minami Alps Factory. We now have the best stage set with state-of-the-art facilities and a rich natural environment. It is the power of "people" that will truly breathe life into this new factory and create value. Each and every employee will embody the manufacturing spirit passed down through generations and bring new technologies and ideas to fruition.

In the rapidly changing global market, our next challenge is to make this factory a source of new innovation and deliver unprecedented "beauty" and "excitement" to customers worldwide from Minami Alps.

Kōtarō Nagasaki, Governor of Yamanashi Prefecture

I sincerely congratulate KOSÉ Holdings Co., Ltd. on the commencement of operations at its Minami Alps Factory. It is a great joy that you have chosen our prefecture, and we are proud that products loved worldwide will be created from Yamanashi, a land of fine waters.

We expect that through the "local production for local consumption of energy" initiative utilizing CO2-free electricity from hydropower and green hydrogen supplied by our prefecture, the factory will develop as a world-class sustainable facility, and contribute to job creation and regional economic development.

Kazumoto Kanemaru, Mayor of Minami Alps City

I sincerely congratulate you on the commencement of operations at the Minami Alps Factory. We are extremely proud that products trusted by consumers worldwide will be disseminated from our city. KOSÉ Holdings Co., Ltd. has built a good relationship with our city through environmental conservation activities and community contribution activities.

It is with great pleasure that we see a new production base established in this area through these connections. We look forward to deepening our collaboration to foster mutual development between the region and the company, and to build a better future.

Reference Materials

(Note 1) Green Hydrogen: When used as a heat source, the only emission is water. It is hydrogen obtained by electrolyzing water using electricity generated from renewable energy. It is characterized by not emitting CO2 during production.

(Note 2) Mid-to-Long-Term Vision: https://koseholdings.co.jp/ja/info/mid/

(Note 3) Water Story "Water, Life, Beauty": https://koseholdings.co.jp/ja/sustainability/environment/water/

(Note 4) Yamanashi Model P2G System: At the Yonekura-yama Power Storage Technology Research Site (Kofu City, Yamanashi Prefecture). A new business model that absorbs surplus electricity from solar power generation by a hydrogen production device and utilizes the produced hydrogen for heat demand in factories, etc.

Related Releases

- KOSÉ Commences First Phase Construction of "Minami Alps Factory" and Announces Future Plans ~Towards a Sustainable Factory Facing Both "People" and "Earth" in 2026~

Issued February 14, 2024: https://koseholdings.co.jp/ja/kose/news/8478/

- KOSÉ to Utilize "Hydrogen" for Energy at Minami Alps Factory

Initiates "Local Production for Local Consumption of Energy" Model Utilizing Yamanashi Prefecture's Proud Water Resources ~Memorandum of Basic Agreement Signed Regarding Sustainable Society Construction Utilizing Yamanashi Prefecture's Rich Water Resources~

Issued June 14, 2024: https://koseholdings.co.jp/ja/kose/news/8683/

- Support for "Brand Promotion Project for Land of Fine Waters" ~Donation of 10 Million Yen to Yamanashi Prefecture Utilizing Corporate Hometown Tax System, Acceptance Ceremony Held~

Issued February 27, 2026: https://koseholdings.co.jp/ja/news/9868/

Minami Alps Factory Overview

Location: 2847-1 Yagishimajima, Minami Alps City, Yamanashi Prefecture

Site Area: 110,763 m2

Construction Period: Construction started July 2024, Completion February 2026

Main Production Brands: Skincare products such as "DECORTE," "SEKKISEI," and "ONE BY KOSÉ"

Total Floor Area: 39,280 m2

Building Structure: 3 floors above ground, Steel structure

Investment Amount: 38 billion yen

Number of Employees: 90 (as of end of June 2026) *Planned to reach up to 300 at full operation depending on production status.

KOSÉ Co., Ltd. Major Domestic Production Bases

- Gunma Factory

Location: 1913 Sakai-Iyo, Isesaki City, Gunma Prefecture

Operation Started: 1979 (Showa 54)

Site Area: 88,987 m2

Products: Cosmetics and toiletries

- Sayama Factory

Location: 2201 Fujimi, Sayama City, Saitama Prefecture

Operation Started: 1964 (Showa 39)

Site Area: 106,161 m2

Products: Cosmetics