Samyang Foods is seeing a boost of over 3% in its stock price following the announcement of a new production facility in Vietnam, valued at approximately 200 billion won. This marks the company's second overseas production site, following its operations in China, and is expected to enhance its long-term production capacity.
As of 3:15 PM on November 12, Samyang Foods shares were trading at 1,254,000 won, up 43,000 won (3.55%) from the previous trading day, according to the Korea Exchange.
On November 11, Samyang Foods revealed plans to invest a total of 218.6 billion won to establish a new production plant in Vietnam. The company will invest about 131.1 billion won to secure 100% ownership of the local subsidiary and proceed with the construction of the factory, which is expected to be completed by the end of January 2029.
The new facility will be designed to accommodate up to eight production lines. Initially, one line will be dedicated to producing non-fried noodles, while the remaining seven lines will be set up for fried noodle production. This will be the first time Samyang Foods has introduced non-fried noodle equipment in its overseas production facilities.
Market analysts believe that the new factory in Vietnam will significantly contribute to Samyang Foods' long-term production capacity expansion.
Kwon Woo-jung, a senior researcher at Kyobo Securities, stated, "If all eight lines are established, Samyang Foods' production capacity could increase by approximately 28% compared to current levels. This would allow for an annual production capacity of around 1.1 billion servings, similar to the new factory in China, potentially generating sales of about 1 trillion won."
* This article has been translated by AI.
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