Hyundai Corporation Expands UK Mushroom Factory... "Securing Local Production and Distribution Network"

Hyundai Corporation Holdings is expanding its local factory to grow its mushroom business in the UK. They have not only increased local production volume but also diversified varieties and secured local distribution channels.

Hyundai Corporation Holdings (hereafter Hyundai Corporation) announced on the 6th that it held a completion ceremony on the 2nd for the expansion of its second factory in Ormskirk, Lancashire, UK. Key executives, including Chung Mong-hyuk, Chairman of Hyundai Corporation Group, and Kim Won-gap, Vice Chairman, attended the ceremony.

Exterior view of Hyundai Corporation Holdings' 2nd factory located in Ormskirk, Lancashire, England [Photo by Hyundai Corporation]

With the expansion of the second factory, Hyundai Corporation now has the largest oriental mushroom unit farm in the UK. The production capacity will increase from the current 400 tons per year to about 800 tons per year by 2026. The varieties produced will also expand from shiitake and oyster mushrooms to include lion's mane mushrooms.

Through this expansion, Hyundai Corporation has completed a local system in the UK covering everything from mushroom substrate (nutrient medium for microbial cultivation) to sales. It is common for oriental mushroom producers in the UK to import substrates from countries like China. However, Hyundai Corporation produces substrates locally, expanding its value chain. Mushrooms grown using UK-made substrates can be sold through distribution channels that do not handle imported foods, thereby broadening sales routes.

In 2018, Hyundai Corporation established a joint mushroom cultivation factory in Lancashire, UK, with the domestic agricultural company Green Hapmyeong. They launched the mushroom business by establishing the 'Sumishi Mushroom Holdings' corporation. UK consumers tend to prefer domestic agricultural products, which is why local cultivation was chosen.

Hyundai Corporation actively utilized local distribution networks for mushroom sales. Starting with securing a supply contract with the UK supermarket chain Tesco, they now supply mushrooms to over 1,150 Tesco stores and about 300 Marks & Spencer stores, among other large supermarket chains.

Hyundai Corporation's mushroom business recorded sales of approximately 10 million pounds (about 16 billion KRW) last year. Hyundai Corporation expects visible sales growth from this factory expansion, which was made based on strong consumer demand. They are also considering expanding into the North American market as well as the European UK region.

Chung Mong-hyuk, Chairman of Hyundai Corporation Group, emphasized, "The mushroom business is preparing to enter North America based on our successful experience in the UK. Continuously expanding the value chain and discovering new businesses are essential to becoming a prepared 100-year company."