Russia: Orion to expand Tver production facility

Orion, the South Korean confectionery manufacturer, has announced plans to significantly expand its production capacity in Russia to meet rising demand for its snack products.

The company intends to invest approximately 60 billion KRW ($43.1 million) to add four new production lines to its existing plant in Tver, situated northwest of Moscow. Scheduled for completion by 2027, the expansion will focus on increasing the output of the company’s flagship Choco Pie brand and various biscuit products. This development follows a period of robust growth for the firm in the region; Orion previously enhanced its Russian footprint in 2022 with the opening of a new $60 million factory in the same province.

Commenting on the investment, an Orion spokesperson stated: “The expansion is a strategic move to solidify our market position in Russia and neighbouring CIS countries. By increasing our local production capabilities, we can more effectively respond to the growing popularity of ‘K-food’ and ensure a stable supply chain across the region”.

Orion entered the Russian market in 2003 and currently operates two production facilities in Tver and Novosibirsk. The company’s Russian subsidiary reported a turnover of 150 billion KRW ($107.8 million) in the first half of 2024, representing a double-digit increase year-on-year.

Source: Korea Times