Samyang Foods' Miryang Plant 1 located in South Gyeongsang Province (Samyang Foods)

South Korean food manufacturer Samyang Foods is set to build its first overseas plant in China in a strategic move to bolster its global presence with its spicy Buldak ramyeon.

In a regulatory filing Wednesday, the company unveiled plans for a 201.4 billion won ($139 million) manufacturing facility in Jiaxing, Zhejiang province. The six-line production plant is slated for completion in January 2027.

The food company will invest 64.7 billion won to establish a subsidiary in Singapore by late 2025, retaining a 90 percent ownership stake, and then create an entity in China to manage the construction and financing of the new production facility.

The ramyeon manufacturer stated that this move is a strategic initiative to strengthen its local responsiveness and advance localization efforts in the Chinese market. “The manufacturing plant’s output is solely intended for the Chinese domestic market,” a company official explained.

China stands as the food company's largest overseas market, accounting for 25 percent of its exports. “China primarily imports our Buldak products,” the company official said, adding that the flagship Buldak line accounts for 70 percent of the company’s overall revenue.

The company’s third-quarter sales were up 31 percent on-year, reaching 438.9 billion won. International sales accounted for 78 percent of the quarterly revenue, which surged 43 percent on-year to 342.8 billion won.

With accumulated sales exceeding 1.2 trillion won in the first three quarters, the company has surpassed the 1.19 trillion won revenue recorded last year.

Currently, all ramyeon products for international markets are manufactured in Korea, with the Miryang factory in South Gyeongsang Province handling Chinese exports since 2022, alongside production facilities in Wonju, Gangwon Province, and Iksan, North Jeolla Province.

The second factory under construction in Miryang, scheduled to open in the first half of next year, will target the US market and increase the company's annual ramyeon production capacity from 1.8 billion to 2.5 billion units.

By No Kyung-min (minmin@heraldcorp.com)