Nongshim to open another plant in US
Nongshim's second production line in California / Courtesy of Nongshim
By Kim Jae-heun
Nongshim will open its second manufacturing facility in California next month, enabling the food giant to produce a total of 8.5 million packs of instant noodles, the company said Thursday.
It has recently completed the construction of new production lines next to an existing one in Los Angeles. The two facilities are expected to create synergy by cutting logistics and raw material costs, company officials said.
The new factory will focus on mass production of steady sellers like Shin Ramyun, Shin Ramyun Black and Yukejang (beef bowl noodle soup) Bowl Noodle.
“Last year, we had to borrow some stocks from domestic facilities to cover up the soaring demand in America. Our old factory's production capacity reached its maximum level at that time,” a Nongshim official said. “We expect our new production line to contribute largely in expanding supply for our popular noodle items in North, Central and South America.”
Nongshim has been flourishing in the region's instant noodle markets in recent years. In the North American market, its sales reached an all-time high of $395 million in 2021, up by 18 percent year-on-year.
The company said Shin Ramyun and its premium line Shin Ramyun Black gained huge popularity in the United States to show explosive revenue growth.
Shin Ramyun Black's sale recorded $32 million last year alone, which soared by 25 percent from the year before. It was picked as “The Best Instant Noodles” by The New York Times in 2020.
The price of Shin Ramyun Black in the U.S. is six times more expensive than Japanese instant noodles. Still, American consumers chose Shin Ramyun Black over Japanese products for its quality.
Nongshim also introduced instant noodles for vegans in 2021, achieving $12.6 million in sales in one year.
“We will continue to show 20 percent growth every year until 2025, when we hope to achieve $800 million in sales in the United States,” a Nongshim official said.