South Korea’s Nongshim looking to set up its third plant in US

Nongshim Co., Ltd., a South Korean food and beverage firm headquartered in Seoul, is reportedly considering the construction of a new manufacturing facility in the United States. Currently, the company is said to be reviewing the plan.

If Nongshim pushes through with the plan and builds the factory, it will be its third facility in the country. It will be an instant noodle manufacturing plant that will be set up in the eastern part of the U.S.

The company is aiming to have its third factory to meet the increasing demand for Korean instant noodles in the region. It was the chairman of Nongshim Co. who shared this information.

In the U.S., the profits of the Shin ramyun manufacturer were said to have surged by 24% last year. The addition of a new factory is expected to further boost its sales and expansion is expected to follow.

As per The Korea Economic Daily, the instant noodle maker's chairman, Shin Dong Won, revealed the plans for a new facility at the shareholders' general meeting that took place late last week. At this point, the chairman said that they still need to formulate the details of the plan and polish it for finalization by the end of this year or early 2024.

Nongshim Corp. is already operating two production plants in the territory and these are both located in Rancho Cucamonga, California. The first one was inaugurated in 2005, while the second only opened in 2022. The two plants brought the company's production capacity of instant noodles to 850 million units per year.

The Korea Times reported that Lee Byung Hak, the co-chief executive officer of Nongshim Co., said that the expansion of their ramyun business to the global stage is one of their goals as well.

"Nongshim achieved overseas sales of 1 trillion won last year, solidifying its position in the global market," the co-CEO said. "We will restructure our business model, which has been centered on instant noodles and snacks, not only to improve the efficiency of our existing core business but also to diversify our portfolio."