This file photo, taken Oct. 21, 2024 and provided by Samyang Foods Inc., shows the company’s event in New York to promote its Buldak Bokkeummyeon product. (Image courtesy of Yonhap)
SEOUL, Dec. 19 (Korea Bizwire) — Samyang Foods Inc., famous for its Buldak spicy ramen, said Thursday it will invest 201.4 billion won (US$139 million) to build its first overseas plant in China by early 2027 to meet the growing local demand for its products.
Samyang plans to establish a subsidiary in Singapore in the first half of next year to start the construction of the plant in Jiaxing, located in China’s eastern Zhejiang Province, late next year, a company spokesperson said.
Demand for Buldak ramen products has been on the rise in global markets, including China, Southeast Asia and the United States, since 2014, when the ramen’s intense spiciness ignited a viral food-eating challenge.
China is the biggest export market for Samyang, with 25 percent of its overall shipments heading to the neighboring country.
Samyang’s exports have been on a steady increase, helped by the global popularity of its Buldak ramen series, growing from $100 million in 2017 to $300 million in 2021 and then to $560 million last year.
This month, Samyang won the $700 million Export Tower award at the 61st Trade Day ceremony for its shipments from July 2023 to June 2024.
It marked the first time for a local food company to win the award for more than $700 million in exports.
Buldak ramen products accounted for more than 90 percent of exports during the one-year period.
About 1 billion units of Samyang’s Buldak Bokkeummyeon, commonly known as “fire ramen,” are sold annually in 100 countries, according to the company.
Since its debut in 2012, accumulated sales of the hot chicken-flavored instant noodle products have reached 7 billion units, worth 4 trillion won.
Samyang currently has three domestic plants whose combined output capacity reaches 1.8 billion units a year.
“When the fourth domestic plant is completed next year, the total capacity will rise to 2.5 billion units,” the spokesperson said, adding the Chinese plant’s capacity is not available for now.
(Yonhap)
