Global Economic Times

Samyang Foods to Build New Plant in China to Meet Growing Demand for Buldak Bokkeummyeon: Global Economic Times Reporter / Updated : 2024-12-17 09:31:32

Seoul, South Korea – Samyang Foods, the South Korean food manufacturer known for its fiery Buldak Bokkeummyeon (spicy chicken ramen), announced plans to construct a new production facility in China to meet the soaring demand for its flagship product. 1

The decision comes amid a global frenzy for Buldak Bokkeummyeon, which has seen its popularity skyrocket in markets including China, Southeast Asia, and the United States. The company's existing production facilities have struggled to keep up with the surging demand, leading to frequent supply shortages.

"We will establish a production subsidiary in China and construct a new factory to expand our business in the Chinese market," Samyang Foods said in a regulatory filing on Monday. The company plans to invest 64.7 billion won (approximately US$49 million) in the new venture.

China is Samyang Foods' largest export market, accounting for 25% of its total exports. The spicy ramen has gained immense popularity in China, where it is known as "Huoji Mian" (Fire Chicken Noodles). The new factory will allow the company to localize its products to cater to the specific tastes of Chinese consumers.

"Building a factory in China will give us a strategic advantage in targeting the 1.4 billion Chinese population," said a spokesperson for Samyang Foods. "We can tailor our products to the local market and improve our distribution network."

The new Chinese factory will primarily produce Buldak Bokkeummyeon for the domestic Chinese market, freeing up capacity at Samyang Foods' existing plant in Miryang, South Korea, to focus on exports to the United States and Europe.

Samyang Foods' exports have grown exponentially in recent years, driven by the global success of Buldak Bokkeummyeon. The company's annual exports surged from 93 billion won in 2016 to 809.3 billion won in 2022, representing a nearly ninefold increase. Exports now account for 68% of the company's total revenue.

Earlier this year, Samyang Foods became the first food company in South Korea to achieve US$700 million in annual exports.