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Nissin Foods re-evaluates instant noodle production capabilities in Southeast Asia

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Nissin instant noodles
SE ASIA –
Japanese instant noodle giant Nissin Foods is looking at reorganizing its Southeast Asian manufacturing strategy in preparation for the implementation of the ASEAN Economic Community (AEC) in 2015.

According to Masahiro Fukai, managing director of Nissin Foods (Thailand), the company’s research and development centre in Singapore is currently analysing its manufacturing capabilities and capacities throughout Southeast Asia, investigating their strengths and weaknesses in order to decide which factory will perform best for which particular products, and take responsibility for production for the whole region.

Through this study, the company aims to increase its economy of scale and cost-effectiveness, explained Fukai: “We’re studying the possibility of sharing regional information and pooling the assortment and purchase of raw materials and ingredients in the region.

“For example, Thailand could play a major role in supplying seasoning ingredients to the company’s other instant noodle facilities in the region.”

Nissin Foods has manufacturing plants in 19 countries across the globe. In Asia Pacific, it has facilities in the Philippines, Indonesia, Singapore, Vietnam, Thailand, India, China and Hong Kong.

In 2013, Nissin Foods (Thailand) opened a new US$37.6 million (BHT 1.2 billion) factory for pack-type noodles in Navanakorn Industrial Estate in Pathum Thani.

While the Thai subsidiary has been focusing mainly on producing instant cup noodles since it first started operations in 1994, the pack-type category accounts for 90% of Thailand’s US$470 million (BHT 15 billion) instant noodle market.

 

PACKAGING BUSINESS INSIGHT ASIA

1 PBIA May2015 web

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