Orion Invests 830 Billion Won... Aiming for Global Production Expansion and 5 Trillion Won in Sales

Orion to Invest 460 Billion KRW in Jincheon
Expanding Production Bases in Russia and Vietnam
Aiming for 5 Trillion KRW in Sales and 1 Trillion KRW in Operating Profit

Orion will invest a total of 830 billion KRW to establish a global mid- to long-term growth foundation. It will invest 460 billion KRW domestically to build an integrated production, packaging, and logistics center. This is the largest scale investment among domestic food companies in the past five years. Production facilities will also be expanded in overseas markets such as Russia and Vietnam. Orion aims to achieve sales of 5 trillion KRW and operating profit of 1 trillion KRW by expanding production capacity both domestically and internationally.

On the 15th, Orion held a board meeting and approved an investment plan worth 460 billion KRW to build an integrated production, packaging, and logistics center in the Technopolis Industrial Complex in Jincheon-gun, Chungbuk. The investment includes 68.3 billion KRW for land, 279.7 billion KRW for buildings, and 112 billion KRW for machinery and equipment. The Jincheon integrated center will be built on a site of 188,000㎡ (approximately 57,000 pyeong), equivalent to 26 soccer fields, with a total floor area of 149,000㎡ (approximately 45,000 pyeong). It will be a one-stop production facility that handles everything from production to packaging and logistics. Construction is scheduled to start mid-year and is targeted for completion in 2027.

Once the Jincheon plant is completed, Orion’s domestic production capacity will expand to a maximum scale of 2.3 trillion KRW. This center will serve as a global production hub responsible for both domestic and export volumes.

The investment funds will be sourced from dividends of overseas subsidiaries. Since 2023, Orion has been bringing dividends from overseas subsidiaries in China, Vietnam, and other countries back to Korea, with approximately 290 billion KRW in dividends expected to be received this year alone. The cumulative dividends received from overseas subsidiaries over the past three years amount to about 640 billion KRW. An Orion official stated, "We plan to use overseas dividends as funding for domestic food business investments and to expand shareholder returns through dividends."

Orion is also actively investing in high-growth overseas markets. It will invest 240 billion KRW in its Russian subsidiary, which has recorded double-digit growth for six consecutive years, to expand production lines. Currently, the Tver plant in Russia is operating at over 120% capacity and cannot keep up with local demand for products such as Choco Pie. With this investment, a total of 16 new production lines for pies, biscuits, snacks, and jelly will be established, doubling production capacity to an annual scale of 750 billion KRW.

Orion Vietnam Store Display Image
Photo by Orion

The Vietnamese subsidiary, which has surpassed annual sales of 500 billion KRW, will also secure additional growth drivers. Orion plans to invest 130 billion KRW to solidify its position as the number one food company in the Vietnamese market. In the second half of this year, a new factory building will be completed at the Yen Phong plant in Hanoi, and production lines for key products such as rice snacks will be expanded. Notably, rice snacks, which are popular locally in Vietnam, are on the verge of achieving the number one market share just six years after their launch. Additionally, existing product lines such as pies, jelly, and candy will be sequentially expanded, and an additional logistics center and packaging facility will be built at the third Hanoi plant to secure an annual production capacity of 900 billion KRW by next year.

An Orion official emphasized, "Since our first overseas expansion in 1993, we have completed a virtuous cycle of 'growth-investment-growth' over 30 years, establishing ourselves as a global company with overseas sales accounting for over 65%. With this large-scale domestic and international investment, we plan to dramatically expand production capacity and further strengthen the foundation for mid- to long-term growth."

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