Number one Thai instant noodle manufacturer scales up Esztergom base to expand in Europe
2024. 09. 13.
Thai President Foods, one of the largest players in the instant noodles market, is set to scale up its operation in Esztergom with an investment of more than EUR 45 million in a dedicated spice manufacturing plant and new production lines in order to expand in Europe.
Thai President Foods (Hungary) Kft., the Hungarian subsidiary of the Bangkok-based company – founded more than half a century ago – has launched a EUR 45.3 million capacity expansion and logistics development project at the Esztergom plant, which was established in 2013.
The first stage of the investment at the parent company's only European production unit consists of the construction of a solar-roofed hall, which will be used in the next phases to build a spice manufacturing centre, install two new production lines and increase the plant’s storage capacity.
The project will be completed in 2026 and will eliminate the need to transport raw materials from Thailand – from a distance of almost 9,000 kilometres – to Europe for products to be sold in the continent. Hungarian partners will provide most of these resources, from flour to packaging materials.
The investment is based on the insight that the domestic market in Thailand is mature, growing at 1-2 percent per year at most, while there is room for significant growth in Europe. The company, already the number one player in the Scandinavian countries and well positioned in Western Europe, expects the scaling up of the Esztergom unit to increase Europe’s share in the total revenue from 20-25 percent to 40 percent.
Thai President Foods was established in 1972, it is one of the largest producers and distributors of instant noodle meals across the globe. It sells its products, including Mama and Thai Chef brand instant dishes – mainly noodles and soups – in 68 countries.
The Hungarian subsidiary is primarily active in the Scandinavian and Western European markets, with sales of HUF 6.27 billion last year and an average headcount of 131. The investment is bound to increase the number of available jobs in Esztergom by eighty.
