SPC Group is establishing a bakery factory in Malaysia to target the $2.5 trillion halal food market.
On the 26th, SPC Group stated that it held a completion ceremony for the Paris Baguette Johor production center at the Nusajaya Tech Park in Johor, Malaysia, the previous day. Heo Young-in, chairman of SPC Group, said at the ceremony, "We will use the Johor production center as a bridge to deliver healthy and happy flavors to halal market customers across 2 billion people, including Southeast Asia and the Middle East."
The Paris Baguette Johor production center will serve as a hub to supply products to the global halal food market, focusing on Southeast Asia and the Middle East, where there is a large Muslim population.
Paris Baguette has currently entered six Southeast Asian countries, including Malaysia, Singapore, Indonesia, Vietnam, Cambodia, and the Philippines. It is also preparing to open stores in three countries—Thailand, Brunei, and Laos—where it has signed master franchise agreements. Additionally, expansion into Middle Eastern countries such as Saudi Arabia and the United Arab Emirates (UAE) is also underway.
The Paris Baguette Johor factory has a total floor area of 12,900 square meters. With seven production lines, it can produce a maximum of 300,000 bakery products per day, or up to 10 million per year. It was equipped with advanced automated facilities and safety equipment, investing about 80 billion won, which is double the initial plan.
Through this factory construction, Paris Baguette has been able to enhance its brand competitiveness by supplying fresh and high-quality products to the Southeast and Middle East regions. It can also supply halal products to North America, Europe, and Africa, securing a larger customer base in the global market.
Plans are also in place to produce halal-certified products for export through the SPC Samlip subsidiary at the Johor production center. SPC Samlip is set to establish an ASEAN corporation next month and plans to use the Johor production center as a base to actively conduct business in Southeast Asia and the Middle East. The Samlip ASEAN corporation will serve as a forward base for selling finished goods produced in Korea to the ASEAN region.
Heo Jin-soo, president of SPC Group, noted, "The completion of the Johor production center has significant meaning in establishing a solid foundation for continuous growth in the global market, along with strengthening the overseas supply chain," adding, "Through this factory, which serves as a strategic point for targeting the halal market, we will expand our global business more quickly and effectively."
SPC Group is accelerating its global business expansion by establishing production hubs in key regions around the world, including the Johor production center in Malaysia, the Tianjin factory built in China in 2017, and the factory under construction in Texas, USA. SPC Group plans to have 12,000 stores worldwide by 2030.