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Buldak Ramen manufacturer to establish first overseas factory in China

Published: 17 Dec. 2024, 18:43 Updated: 17 Dec. 2024, 19:18

KIM JU-YEON
[email protected]

Samyang Foods' Buldak Ramen products are displayed at a supermarket in Seoul on Nov. 15. [YONHAP]

Buldak Ramen maker Samyang Foods will establish its first overseas factory in China as the company pushes to expand its exports following explosive sales of the fiery ramyeon worldwide.

The facility will aid production of the food company's goods for the Chinese market. The country is the company's largest overseas market, accounting for 25 percent of its exports. All Buldak products sold overseas are currently produced domestically.

The company’s Miryang Plant I in South Gyeongsang currently produces the goods that are exported to China. The Miryang facility will reportedly pivot to products for the United States and Europe once the Chinese production facility begins operation.

A private limited company based in Singapore, which Samyang Foods will spend $45 million to establish, will oversee and finance the Chinese operation, according to the firm's filing to the Financial Supervisory Service released Monday. Samyang Foods will hold a 90 percent stake in the Singapore office, which will set up a firm in China to construct the production facility there.

Samyang Foods said it would disclose specific plans for the Chinese unit, such as its establishment date and size, at a later date.

The ramyeon manufacturer will pay for the Singapore branch in installments until Dec. 31, 2025, the day of its establishment.

Samyang Foods is having a record-breaking year for exports and sales. It announced Dec. 5 that it had achieved $700 million in exports in a year between July 1, 2023, and June 31 of this year. It surpassed 1.2 trillion won ($834.1 million) in sales as of this year's third quarter on the back of its increased overseas revenue from its flagship Buldak Ramen and related products, exceeding the total revenue made in 2023.

It expects exports to account for more than 80 percent of its total sales for the first time this year as the spicy instant noodles — of which it has released variety of flavors, such as the Buldak Carbonara Ramen, since the product's 2012 launch — continue to see international success.

Overseas shipments made up 77 percent of its total sales in the first three quarters of 2024.

The company's total assets currently stand at 1.17 trillion won, according to its Monday filing.

BY KIM JU-YEON [[email protected]]