[Korea Financial Newspaper ShinMiJin reporter] Orion, a confectionery company, will make a leap into a comprehensive food company by promoting the global beverage business using Jeju Lava Seawater.
Orion announced a plan to promote the beverage business through the acquisition of Jeju Lava Water, held a press conference on Jeju Island at the Best Western Jeju Hotel on the 26th.
Orion will start construction of a factory in the Lava Sea Fishery Complex located in Jeju City and launch mixed beverages in 2018 to export to China and Southeast Asia. Earlier in November, Orion acquired Jeju Lava Water, which owns the lava seawater reserves.
Lava seawater is formed in the lower part of the freshwater layer by seawater filtration on the volcanic rock layer, and it is characterized by rich mineral contents such as magnesium and calcium. The reserves in Cheju Island are estimated to reach 2.7 billion tons.
The company plans to use the global sales network of Orion to export its products to China and Southeast Asia and to launch a global beverage business. Currently, China's beverage industry is worth a total of 96 trillion won, of which the functional market is expected to grow to about 22 trillion won by 2021.
Orion will step up its efforts to advance into the beverage business by adding new businesses such as beverages and simple substitutes in addition to its existing confectionary business.
Last year, Orion established a joint venture for the production of premium substitutes for the NACF. With the goal of completion by the end of this year, the company is building a health food manufacturing plant with an area of 3,000 pyeong in the agricultural complex of dongbuk-myeon in Milyang-si. The goal is to make a full-fledged leap forward as a global food company.
On the other hand, Orion will invest 300 billion won in Jeju Island over the next five years to expand the business of Jeju Lava Water. In the early stage of the business, which is difficult to generate operating profit, we plan to raise 500 million won every year to the Jeju Development Fund and return 5% of the operating profit from the beverage business to Jeju Island.
Daily Financial Economy News FNTIMES - Unauthorized Reproduction, Copying, Distribution Prohibited for Commercial Purposes
Copyright ⓒ Korea Financial Newspaper & FNTIMES.com
