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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Orion has announced plans to invest 830 billion won in its domestic and overseas production facilities over the next three years.
In a board meeting held on Tuesday, Orion passed a proposal to invest 460 billion won in the establishment of a food production, packaging, and logistics integrated center at the Technopolis Industrial Complex in Jincheon, Chungcheongbuk-do. This is the largest investment in the food industry in the last five years, following CJ CheilJedang's 540 billion won investment in a plant producing products like Hetbahn.
The Jincheon integrated center will cover 188,000 square meters, roughly the size of 26 football fields, and will serve as a one-stop production base that handles production, packaging, and logistics. The center is scheduled to begin construction in mid-2023 and is expected to be completed by 2027. It will produce not only for the domestic market but also for exports.
Once the Jincheon plant is completed, domestic production capacity will expand to a scale of up to 2.3 trillion won. The investment will be funded by dividends from Orion's subsidiaries in China and Vietnam. Since 2023, Orion has been receiving dividends from its overseas subsidiaries, with an expected 2.9 trillion won to be received this year alone. The cumulative dividend amount over the next three years is approximately 6.4 trillion won.
In addition to the Jincheon plant, Orion will also invest 240 billion won in its Russian operations and 130 billion won in its Vietnamese operations. Orion’s Russian subsidiary has seen double-digit growth in sales for six consecutive years. Although the plant's operating rate has exceeded 120%, there has been a shortage in the supply of Choco Pie. As a result, the company has decided to build a new factory building at its Tver plant. This follows the operation of a new plant at Tver in 2022, marking the third expansion in three years. Once the investment is completed, the total annual production capacity will double to 750 billion won.
Orion’s Vietnamese subsidiary, which surpassed 500 billion won in revenue last year, will invest 130 billion won to strengthen its position as the leading food company in Vietnam.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
