Nongshim and Samyang Foods are ramping up their overseas sales by establishing new production bases. Nongshim plans to increase supply to growing markets in Europe and Russia from its Busan Nogsan export factory, while Samyang Foods aims to secure export capacity to the U.S. and Europe through local production in China. This expansion of production capacity and overseas distribution networks is expected to significantly boost their international business.
According to the food industry on October 13, Nongshim is preparing to launch its export-only factory (referred to as the Nogsan factory) in the Nogsan National Industrial Complex in Busan as early as the end of this month. This will be the first time Nongshim has built a separate factory dedicated solely to export production.
The Nogsan factory is expected to produce approximately 500 million ramen packets annually from three production lines. Combined with the existing Busan factory's output of about 600 million packets and the Gumi factory's 100 million packets, Nongshim's domestic export capacity will increase to around 1.2 billion packets per year. The factory is designed to expand to a maximum of eight lines to accommodate future demand growth.
Products from the Nogsan factory will be shipped to Europe, Russia, and Southeast Asia. While the U.S. and Chinese factories focus on their respective domestic markets, the Nogsan factory will serve as a hub for supplying other emerging growth markets. Nongshim chose the Nogsan Industrial Complex for its proximity to Busan New Port, facilitating maritime transport and allowing the use of existing supply chains for raw materials. According to Nongshim, Busan Port has export routes connecting to approximately 150 countries worldwide.
Nongshim is expanding its distribution network in key markets such as the UK, Germany, and the Netherlands through its European subsidiary established in the Netherlands last year. In the first half of this year, the European subsidiary's sales reached approximately 80.3 billion won, a significant increase from about 9.2 billion won in the same period last year. Nongshim aims to grow its sales in Europe to around 400 billion won by 2030.
In Russia, Nongshim established a sales subsidiary in Moscow in June and began full-scale operations in August. The company plans to expand its sales network into key countries in the Commonwealth of Independent States (CIS) such as Kazakhstan and Uzbekistan from its Russian subsidiary.
Nongshim's overseas business performance is accelerating. In the first half of this year, sales from its overseas subsidiaries reached 641.4 billion won, a 26.8% increase compared to the same period last year, accounting for 33.9% of total sales. When including direct exports through domestic subsidiaries, the share of overseas business in total sales rises to 40.2%.
A Nongshim official stated, "With a significant increase in export volume, we expect visible sales growth in major overseas regions such as Europe and Asia."
Samyang Foods is currently constructing its first overseas factory in Jiaxing, Zhejiang Province, China, with a goal to complete it by January next year. Initially planned with six production lines, the Jiaxing factory's capacity has been increased to eight lines, with total investment raised to 207.2 billion won. Once completed, the factory will become a major overseas base capable of producing up to 1.13 billion packets of its popular Buldak Bokkeummyeon annually.
China is a key market for Samyang Foods, accounting for about 25% of its total export volume. The establishment of the Jiaxing factory will allow Samyang Foods to shift from exporting products made in domestic factories to directly producing and supplying for the Chinese market. This transition will enable domestic production bases in Wonju, Iksan, and Miryang to focus on supplying other overseas markets, including North America and Europe.
Last June, Samyang Foods completed its export-only Miryang 2 factory, which has an annual production capacity of approximately 830 million packets. With the addition of the Chinese factory, its total global production capacity is expected to reach around 3.76 billion packets. In the first half of this year, exports accounted for 88% of Samyang Foods' noodle and snack sales. The company plans to meet local demand in China while reallocating domestic production to other growth markets to support its overseas sales expansion.
A Samyang Foods official commented, "The completion of the Jiaxing factory is expected to mark a significant step in our strategy to penetrate the Chinese domestic market and further strengthen our global production capabilities."
* This article has been translated by AI.
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