LOTTE Wellfood signed a contract for the sale of its baking division's Jeungpyeong factory located in Jeungpyeong-gun, Chungcheongbuk-do, on the 7th. The 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 was established in 2022 after LOTTE Confectionery merged with LOTTE Foods. Since the merger, LOTTE Wellfood has been conducting ongoing efficiency improvements in production facilities and adjustments to product lines, targeting certain overlapping production facilities such as baking and ice cream. As a result, the Jeungpyeong factory had been idle since June of last year.
LOTTE Wellfood plans to use the funds secured from this sale for global business expansion. Indeed, LOTTE Wellfood is actively working on global expansion initiatives such as establishing a unified corporation in India and investing in equipment for its Pepero line.
The Jeungpyeong factory was completed in September 2006 as the production base for LOTTE Boulangerie. In August 2014, LOTTE Wellfood (then LOTTE Confectionery) merged with LOTTE Boulangerie, and it is now part of LOTTE Wellfood's baking division.