South Korean company Samyang Foods, producer of Buldak fried noodles, has announced plans to open its first overseas factory in China through its subsidiary Samyang Singapore PTE.

The company plans to invest $45 million to establish its facilities in China through Samyang Singapore PTE, of which it owns 90%. Samyang Foods did not specify a timeline or location for the new factory.

The development will allow the company to diversify its production base and reduce the risk of concentrating its operations in one location. Currently, production for export to China is managed in the southern province of Gyeongsang, at Plant 1 in Miryang. Despite the start of construction of Miryang Factory 2 in March this year, the company expects a supply shortage around 2027 without the new production base in China.

“Production was expected to be lower than demand around 2027, and there was a need to decentralize factories. In China, production and consumption are possible through localization. So the goal is to resolve the export issues through location,” Samyang Foods explained. explained the manager.

The company is eager to tap into China’s consumer market, which includes a growing middle class with increasing purchasing power.

Of Samyang Food’s total sales for the first three quarters of 2024, 77% was achieved through exports. China is the company’s largest market, accounting for 25% of export sales. After production begins in China, factories in South Korea will produce supplies for export to the United States and Europe.

“Samyang Foods to establish its first overseas factory in China” was originally created and published by Investment Monitora brand owned by GlobalData.

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