Nongshim to Open Second US Factory Next Month... "Doubling Growth by 2025"

[Asia Economy Reporter Song Seung-yoon] Nongshim announced on the 17th that its second factory in the United States will begin full-scale operation starting next month.

With the operation of the second factory, Nongshim will have an annual production capacity of 350 million ramen cups. Adding the annual production volume from the existing LA factory, it will be able to produce 850 million ramen cups in the U.S. alone. This will also accelerate entry into markets in Mexico and other Latin American countries, as well as the U.S. market. Nongshim aims to achieve sales of 800 million dollars in the North American market by 2025, doubling last year's 395 million dollars.

Nongshim's second U.S. factory was built on approximately 26,800 square meters (8,100 pyeong) near the LA factory located in Rancho Cucamonga, California. This proximity allows for efficient procurement of various raw materials needed for production and logistics cost savings, as well as maximizing synergy effects through collaboration between the two factories.

The production facility consists of high-speed lines handling two cup noodle lines and one bag noodle line, and will produce key products with high market demand such as Shin Ramyun, Shin Ramyun Black, and Yukgaejang Sabalmyeon. The second factory, equipped with high-speed lines, will operate as a mass production system for main products, while the existing factory will operate as a small-lot, multi-product system to flexibly respond to market demand.

The second U.S. factory is Nongshim's sixth overseas factory. Nongshim established its first overseas factory in Shanghai, China, in 1996. Subsequently, it built factories in Qingdao in 1998, Shenyang in 2000, and the LA factory in the U.S. in 2005. In 2015, it also established a new Baeksansu factory in Yanbian, China, thereby strengthening its production bases in the U.S. and China to target overseas markets.

A Nongshim official stated, "With the full-scale operation of the second factory, we expect a significant contribution to supply expansion," adding, "We aim to achieve double-digit growth annually and increase the overseas portion of total company sales to 50% within a few years."

This content was produced with the assistance of AI translation services.