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July 16, 2024

Nongshim to build W229b logistics center on robust overseas sales

PUBLISHED : June 14, 2024 - 16:54

UPDATED : June 14, 2024 - 16:54

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Nongshim instant noodles (from left to right, clockwise) Chapaguri, Neoguri, Shin Ramyun Air Dried, Shin Ramyun Black and Shin Ramyun (Nongshim)

Nongshim, the top ramyeon manufacturer in South Korea, said Friday it plans to invest 229 billion won ($166 million) to build a new logistics center in Ulsan, South Gyeongsang Province, largely driven by increasing overseas sales in recent years.

The new Ulsan logistics facility will enhance the company’s distribution network, facilitating connections between ingredient suppliers and its ramyeon production plants in Gumi and Busan.

Nongshim said that the company is considering constructing an additional ramyeon production plant dedicated to export products.

“We are currently considering building a new ramyeon plant in Busan, which is also expected to create more synergy with the Ulsan logistics center,” a Nongshim official said. “Nonetheless, the specific schedule and investment amount for the new plant are still under review at the moment.”

Nongshim's overseas sales, combining both exports and the overseas sales of its international subsidiaries surged about 50 percent in three years to 1.25 trillion won in 2023 from 826.3 billion won in 2020. Last year's figure accounted for 37 percent of total sales.

Chairman Shin Dong-won also hinted at plans to construct an additional domestic production plant during the previous stakeholders' meeting held in March. “With the increase in overseas exports, we are considering building a ramyeon production plant dedicated for export either in Pyeongtaek or Busan.”

The new production plant to be built domestically is expected to focus on manufacturing products for export primarily to Japan and Southeast Asian countries, where the company does not have local production facilities.

Currently, Nongshim operates overseas subsidiaries in six countries: the US, Canada, China, Vietnam, Japan and Australia. Of them, Nongshim operates production plants in the US and China.

By Hwang Joo-young (flylikekite@heraldcorp.com)

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