Seventeen days have passed since operations were halted by a fire at SPC Samlip's Siwha plant, but it has not returned to 100% normal operations. Most lines have been restarted, so there has been no major disruption to supply, but more time is needed for full restoration.
According to industry sources on the 20th, the Siwha plant in Jeongwang-dong, Siheung, Gyeonggi, where a fire broke out on the 3rd, has sequentially resumed all production lines except the R building (production building) bread line, and its current operating rate is about 95%.
The Siwha plant mass-produces not only mass-market bread but also ready-to-eat meals and B2B (business-to-business) burger buns supplied to major franchises. On the 3rd, a fire broke out on the third-floor bread production line of the four-story R building at the Siwha plant. Operations were fully suspended immediately after the fire, raising concerns about supply disruptions to franchisees and convenience stores, but most lines have been restored except for the bread line where the fire occurred.
Convenience store chains temporarily halted sales of some bread items. Currently, only orders for products that use bread loaves have been reduced. A convenience store industry official said, "With the plant restarting, most bread products can be ordered without issue," adding, "However, some items that use bread loaves, such as sandwiches, are still under-ordered, but it appears they will return to normal starting next week."
The Siwha plant is where a worker was killed in a crushing accident on a cream bread production line on May 19 last year. Police and the Ministry of Employment and Labor (MOEL) are currently investigating on suspicions including the Serious Accidents Punishment Act and occupational manslaughter. At the time, operations at the Siwha plant were fully suspended after the accident and resumed on June 24 last year, 36 days after the suspension.
In the industry, the view is that the likelihood of an immediate supply crisis is low. Compared with the shutdown that followed last year's fatal accident, the impact appears more limited. A restaurant industry official said, "After last year's fatal accident halted operations, we prepared measures in advance, such as diversifying supply sources, and having experienced a supply stoppage, we were able to respond quickly this time." The official added, "Because the plant restarted quickly, we did not experience supply disruptions or have to use substitute products." Still, convenience store chains and the restaurant industry are closely monitoring the situation because the plant has not resumed at 100%.
SPC Samlip said that because the fire cause investigation, safety inspections, and equipment reinforcement are proceeding in parallel, it is difficult to specify when full normalization will occur. It also said it is maintaining an alternative production system by utilizing the Seongnam and Yeongnam plants and external partners, ensuring on-time deliveries to bread line clients.
An SPC Samlip official said, "We only have a presumed cause of the fire so far, so we are actively cooperating with the relevant authorities' investigation and focusing on quickly determining the exact circumstances and cause," adding, "The normalization plan for the line is undecided, but we are enabling alternative production and supply by utilizing key hub production facilities such as Seongnam and Yeongnam."
However, some in the industry say the structure's high dependence on the Siwha plant itself could become a problem again. The Siwha plant produces 70% of mass-market bread. A restaurant industry official said, "There is talk in the industry that we need to diversify supply sources, but finding reliable suppliers and adjusting prices is not easy," while adding, "Given the high dependence on the Siwha plant, efforts to secure substitutes are necessary."