Lotte Wellfood Sells Bakery Division's Jeungpyeong Factory to Silla Myunggwa

Sale Amount Not Disclosed
Proceeds from Sale to Be Used for Global Business Expansion

Lotte Wellfood is selling its baking division's Jeungpyeong factory to Silla Myunggwa.

On the 7th, Lotte Wellfood announced that it had signed a contract to sell the baking division's Jeungpyeong factory located in Doan-myeon, Jeungpyeong-gun, Chungbuk, to Silla Myunggwa. This sale of the Jeungpyeong factory was carried out as part of asset efficiency measures. The sale amount is not disclosed due to confidentiality obligations.

Lotte Wellfood.

Lotte Wellfood was launched in 2022 when Lotte Confectionery merged with Lotte Food. Since the merger, Lotte Wellfood has been continuously optimizing production facilities and adjusting product lines for some overlapping production facilities such as baking and ice cream. As a result, the Jeungpyeong factory has been idle since June of last year.

The Jeungpyeong factory was originally built as a production base for Lotte Brangseri and was completed in September 2006. In August 2014, Lotte Wellfood (then Lotte Confectionery) merged with Lotte Brangseri, and the factory became part of Lotte Wellfood's baking division.

Lotte Wellfood plans to use the funds raised from this sale to expand its global business. In fact, Lotte Wellfood is focusing on global business expansion, including establishing an integrated corporation in India and investing in Pepero line facilities.

A Lotte Wellfood official explained, "Lotte Wellfood plans to continue various strategies to enhance competitiveness in the baking business."