Nongshim [004370] is operating its first export-specialized factory built in Noksan, Busan, increasing the domestic factory's annual ramen export supply capacity from 700 million to 1.2 billion units and speeding up its entry into the global market.
We plan to respond to diverse overseas demand through a new factory equipped with artificial intelligence (AI)-based automation facilities and expand exports to existing markets such as Europe and Japan and emerging markets such as India and the Middle East.
According to Nongshim on the 8th, Noksan Export Specialty Factory was built on the site of the existing Noksan Factory in Busan with 6 floors above ground and a total floor area of 48,178㎡ (approximately 14,574 pyeong) and began operation on the 29th of last month.
The new factory is currently operating three production lines, including two bag noodles and one container noodle, and can produce up to 500 million ramen per year. It is designed to expand up to eight production lines in preparation for future growth in global demand.
The existing Busan and Gumi factories' annual export ramen production capacity of 700 million units was added to the new factory's 500 million units, increasing the domestic export supply capacity to a total of 1.2 billion units.
Nongshim now has 10 ramen production bases, including 6 in Korea and 2 each in the U.S. and China. The total production capacity, which includes 3.3 billion units for domestic sales, 1.2 billion units for export, and 1.7 billion units at overseas local factories, reaches a maximum of 6.2 billion units per year.
Noksan Export Factory was built to quickly produce a variety of export products using AI and automation technology.
It can produce more than 600 bag noodles per minute and about 500 container noodles per minute.
Considering the characteristics of export ramen, which requires different noodle thickness, mixing, and packaging depending on the country, the item replacement time was reduced by up to one-fourth compared to existing domestic factories.
The Noksan export factory visited on the 5th had a system that automatically sets up production facilities according to work instructions and an autonomous robot that supplies materials such as packaging materials.
In the packaging process, automated equipment transported the product, and in the inspection stage, AI identified packaging defects and foreign substances.
Jeon Yun-yeol, head of Nongshim's Noksan plant, said, "The purpose of introducing AI is not to reduce manpower, but to enable field workers to produce quality products with less effort. We believe that productivity can be increased by 17-18% by improving facility functions."
◇ Shin Ramyun targets the non-soup noodle market with Tumba and Rosero… Promoting new product launches
Nongshim plans to quickly respond to overseas orders based on the Noksan export factory and expand the supply of ramen for export, such as Shin Ramyun Tumba and Shin Ramyun Kimchi Fried Ramen.
Ramen produced at the new factory will be exported to existing major markets such as Europe, Japan, and Australia, as well as emerging markets such as India, the Middle East, and Southeast Asia.
In Europe, we are expanding the presence of large distributors at regular ramen stands, and in India and the Middle East, we are discovering new distributors and targeting the quick commerce (immediate delivery) market.
In Malaysia, the Philippines, Singapore, and Taiwan, the company is expanding its sales network, focusing on convenience stores, hypermarkets, and e-commerce platforms.
Nongshim is also strengthening marketing targeting young consumers in their teens to 30s. We plan to continue holding Hangang Ramen tasting events and Shin Ramyun snack pop-up stores at overseas fairs and festivals.
Nongshim plans to foster 'Non-Gukmul Myeon', a ramen without soup, as a new growth engine for its global business.
Shin Ramyun Tumba, the flagship product, has sold a cumulative 147 million units overseas as of September this year since its launch in November 2024. Sales volume from January to September this year was approximately 88 million units, exceeding last year’s annual sales volume.
In Japan, within a year of its launch, it was sold as a regular product in convenience stores such as 7-Eleven, Family Mart, and Lawson.
Nongshim is also expanding overseas sales of Shin Ramyun Rosé. Sales began in earnest in the United States in July of this year, and plans are being made to expand sales to countries such as India and Singapore.
In addition, we are developing a new fried noodle product that combines Korean flavors with Shin Ramyun and plan to launch it in the global market as early as the first quarter of next year.
Ji Song-ha, head of Nongshim's global marketing division, said, "In the past, quality was the top priority, so we did not launch new products unless quality was secured, but now that global consumers want new products, we are strengthening our product planning process so that we can introduce new products at least once or twice a year."
Overseas sales of the Shin Ramyun brand in the first half of this year amounted to KRW 651.3 billion, a 36% increase over the same period last year. Overseas sales accounted for 71% of the total sales of the Shin Ramyun brand.
During the same period, overseas sales accounted for 40.2% of Nongshim's total sales. Nongshim has set a goal of increasing this proportion to more than 60% by 2030 and achieving total sales of 7.3 trillion won.
