Orion Russia Plant Expansion 2027: $167M Bet on Booming K-Food Demand
Orion Corp. to invest 240 billion won (US$167M) for its Russia plant expansion 2027 to meet K-food demand. Cumulative sales set to hit 2 trillion won.
From 1 trillion to 2 trillion in just four years—Orion Corp. is doubling down on its Russian success story. The South Korean confectionery giant announced on Monday it'll invest 240 billion won (US$167 million) to expand its production facilities in Russia by 2027, fueled by an insatiable local appetite for K-foods.
Orion Russia Plant Expansion 2027 and the Bungo Pie Craze
According to a company spokesperson, the investment focuses on upgrading the Tver facility, one of two plants Orion operates in Russia alongside Novosibirsk. The move comes as their latest hit, the Bungo pie (a local take on Korea's Charm Bungeo pie), hit the shelves of 20,000 retail outlets last month, including major chains like Tander Hyper and Magnit.
Orion's journey in Russia began in 2003. After surpassing 1 trillion won in cumulative sales in 2021, the company's 2025 projections see that figure soaring past 2 trillion won. With 11 overseas plants spanning China, Vietnam, Russia, and India, the firm is aggressively localizing its supply chain to mitigate global logistics costs.
Managing Risks in a Volatile Market
While demand is high, the Russian market remains subject to geopolitical volatility and currency fluctuations. Investors should weigh the potential for high returns against these systemic risks when considering Orion Corp.'s capital allocation strategy.
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