Lotte Wellfood is selling its dormant bakery plant in South Korea’s North Chungcheong Province to Shilla Myungga as part of its strategy to redirect resources toward international markets.
The facility in Jeungpyeong, which has been inactive since June 2023, was originally built in 2006 as a production hub for Lotte Boulangerie before being absorbed into Lotte Wellfood’s operations through a 2014 merger with Lotte Confectionery.
While the sale price wasn’t disclosed, the proceeds will support the food manufacturer’s overseas initiatives, particularly its expansion in India where it plans to establish an integrated corporation. The company also intends to upgrade its Pepero production facilities, although specific investment figures weren’t provided.
The divestment follows a broader trend among Korean food companies seeking to optimize their domestic operations while pursuing growth abroad. The Jeungpyeong plant’s closure and subsequent sale highlights the challenges facing local manufacturers as they balance production capacity with market demands.
A company representative indicated that Lotte Wellfood will continue implementing various strategies to strengthen its bakery business, though specific details of these plans weren’t outlined.
The deal is expected to conclude, pending standard closing conditions.
