hy, Nonsan Plant Expansion and Logistics Center Establishment with 117 Billion KRW Investment
Fulfillment Center Establishment and B2B Material Production Expansion
[Asia Economy Reporter Lim Hye-seon] hy (formerly Korea Yakult) is making a large-scale investment to secure competitiveness as a distribution-specialized company.
On the 28th, hy signed an investment agreement (MOU) with Chungcheongnam-do and Nonsan City for the "construction of new logistics centers and new factories." According to this agreement, hy will establish new logistics and production infrastructure in the Nonsan area. A total of 117 billion KRW will be invested by May 2024. Chungcheongnam-do and Nonsan City will support the project through administrative and financial assistance.
A new logistics center with an area of 24,793㎡ (7,500 pyeong) will be built within the Dongsan General Industrial Complex. Equipped with automated facilities applying the latest IT technology, it will be capable of processing over 200,000 logistics cases daily upon completion. Combined with company-wide digital transformation, it will serve as an advanced base for providing fulfillment services. With the addition of the Nonsan logistics center connecting Yeongnam, Honam, and the metropolitan area to the Singal logistics center completed in 2017, logistics efficiency is expected to improve.
In response to the rapidly increasing demand for probiotic strains B2B (business-to-business), a multipurpose probiotics plant will also be newly constructed. This will be the second plant following the facility located at the Pyeongtaek factory. The new factory, covering 18,612㎡ (5,600 pyeong), will install four freeze-dryers for probiotic powder production. Production volume of materials will increase by about 60%, expanding transaction volume.
The existing Nonsan factory will be modernized as a specialized production plant for symbiotic probiotics.
Kim Byung-jin, CEO of hy, said, "Through this investment, we will make the production and logistics infrastructure established in Nonsan a forward base to leap forward as a distribution-specialized company."
Since changing its company name, hy has been transforming its business structure. In May, to fully launch the probiotics strain B2B business, it launched a dedicated brand, hyLabs. In July, it opened the logistics business "Predit Delivery Service," which rents out its refrigerated logistics network to partner companies. Recently, to build an integrated logistics system, it has partnered with Kakao Enterprise to develop an IT platform.
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