Nongshim headquarters. (Photo=Nongshim)

 

[Alpha Biz= Reporter Kim Sangjin] Kiwoom Securities has projected that Nongshim's new export-exclusive factory will increase its annual sales by over ₩300 billion. This move is also expected to highlight the growth potential of domestic ramen companies.

According to Kiwoom Securities, Nongshim announced on August 30 that it plans to invest ₩191.8 billion to expand its domestic ramen production capacity by 47 million servings annually through the construction of a new export-focused factory. This will be the company's first domestic factory expansion in 17 years, aimed primarily at meeting the increasing demand in European and Southeast Asian markets.

The new factory is expected to be completed by April 2026 and to start operations in the latter half of 2026. Considering that the European market has higher sales prices compared to other regions, Kiwoom Securities anticipates that annual sales will increase by over ₩300 billion, which is about 9% of the company’s total revenue from the previous year.

The new factory is designed with the potential to expand to eight production lines, depending on future demand growth. About 70% of the total investment will be financed through the issuance of convertible bonds. While the increase in circulating shares could be a downside, this development is seen as a positive move for long-term growth.

Kiwoom Securities noted that, following other major domestic competitors, Nongshim, as the industry leader, has confirmed the expansion of its new production capacity. The continuous expansion of new production capacities by conservative ramen companies underscores the robust growth of K-ramen demand. Notably, the demand growth in advanced markets such as the U.S. and Europe is expected to drive both revenue growth and profitability improvements.

 

 

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