Seoul: Orion Corp., a major South Korean confectionery company, announced plans to invest 830 billion won (US$584 million) in its production facilities to significantly boost sales in the coming years.
According to Yonhap News Agency, Orion is set to allocate 460 billion won to construct an integrated "one-stop" facility in Jincheon, around 90 kilometers south of Seoul, by 2027. This new facility is aimed at streamlining processes from production to logistics.
Orion, widely known for its popular Choco Pie, currently operates six domestic plants and has 11 overseas facilities, which include six in China, two in Vietnam, two in Russia, and one in India. The company also intends to enhance its overseas production capabilities to cater to the growing demand for its confectionery and beverage products. In Russia, an investment of 240 billion won will be made to upgrade one of its two plants. Meanwhile, in Vietnam, 130 billion won will be used to expand one of the existing factories, with plans to establish a third one by 2026.
With these expanded production facilities, Orion sets its sights on achieving an operating profit of 1 trillion won and sales of 5 trillion won in the long term, although no specific timeframe has been provided for these goals. In 2024, Orion reported an operating income of 543.59 billion won on sales of 3.1 trillion won. The company stated, "The company now earns more than 65 percent of its overall sales in overseas markets through continued investments for growth in the past 30 years."