Japan’s Nissin Foods Holdings is setting up a subsidiary in Turkey for the manufacture of noodles.
The Tokyo-headquartered maker of the Soba and Cup Noodles brands said it is investing Tl1.59bn ($38.1m) in the project.
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In a statement signed off by president and CEO Koki Ando today (1 October), Nissin Foods said it has entered an agreement to purchase a factory in Turkey from pasta business Oba Makarnacılık Sanayi ve Ticaret.
The deal includes the plant, located in Sakarya province, production equipment and fixed assets.
Nissin Foods said the Turkey business will mark the company’s “strategic re-entry” to the country, where it said “growth opportunities are robust”.
It added: “In addition to expanding the sales of instant noodles within Turkey, the business will look to expand into neighbouring countries in regions such as Central Asia, the Middle East and north Africa.”
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By GlobalDataThe initiative is part of Nissin Foods’ mid-to-long-term strategy through to 2030, aims set out in 2021, to generate around 45% of its core operating profit from overseas markets.
“Having already achieved this goal, we are committed to further strengthening our focus on international growth,” the company said.
Nissin Foods generated Y776.5bn ($5.2bn) in sales in the fiscal year to 31 March, an increase of 6% from the corresponding 12 months.
Japan accounted for Y482bn, the Americas (listed as mainly the US and Brazil) Y168.6bn, and other areas Y126bn.
The group’s core operating profit across all regions rose 3.6% to Y83.6bn, while operating profit climbed 1.4% to Y74.4bn.
Profit attributable to shareholders was up 1.6% at Y55bn.
Nissin Foods is off to a subdued start in its new fiscal year, with all key metrics showing a decline in the first quarter.
According to the company’s results issued in August, sales were down 4.3% at Y177bn.
Core operating profit dropped 25.5% to Y17.4bn and operating profit decreased 27.5% to Y15.8bn.
Net income to shareholders was down 29.3% at Y11.2bn.
Nissin Foods Co., the Hong Kong-listed arm of Japan’s Nissin Foods Holdings, expanded in Australia last year with the acquisition of frozen dumplings maker ABC Pastry through its Hong Kong-listed business unit.
At the time, Nissin Foods Co. said the acquisition was “a premium opportunity for the group to tap into the Australian frozen food market”.
Another deal was also struck last year in South Korea. Nissin Foods Co. snapped up baked grains crispy rolls maker Gaemi Food.
