HONG KONG (Yonhap News) -- Orion Corp., South Korea‘s second-largest confectionery company, will expand its production facilities in China to meet growing demand there, company officials said Friday.
China now accounts for more than 80 percent of the company’s overseas sales, thanks to the robust growth of confectionery sales in the world‘s No. 2 economy.
The company, best-known for its hallmark “Choco Pie,” will increase its production lines in China from the current 46 to 150 by 2015.
Of that 150, 70 will be located in Beijing, Shanghai and Guangzhou, 50 in the northeastern city of Shenyang and 30 in the western city Sichuan.
The expansion is expected to increase the company’s production capacity in China by about 25 percent by 2016, the Orion officials said.
Pan Orion Corp., the Chinese subsidiary of Orion, expects its sales could reach 4.7 billion ($741 million) yuan next year, up 25 percent from this year‘s estimate of 3.76 billion yuan.
Market researcher Euromonitor estimated last month that the size of the Chinese confectionery market would reach $9.9 billion this year.
Orion plans to expand its presence in the northeastern and western regions of China, with strong sales of Choco Pie, called “Haoliyou” in Chinese, the officials said. (Yonhap News)