Korea top capsule maker expands Vietnam plant in global push

South Korea’s top capsule and functional food maker is expanding its plant in Vietnam to raise its presence in the world market with the goal of becoming a global healthcare company.

Suheung Co. is adding 10 capsule machines at its factory in Long Thanh, Vietnam, to raise the number of production facilities to 52 there in the next three years.

The expansion will make the plant in the Southeast Asian country Suheung’s largest capsule production base as the company is operating 45 machines to manufacture capsules in South Korea. The world’s third-largest capsule maker with a market share of some 8%, is expected to produce about 5.1 million capsules a year in total with the capacity increase.

“We are establishing a global production base in Vietnam while focusing on high value-added production in South Korea,” Suheung CEO Yang Joohwan told The Korea Economic Daily in a recent interview. “Once the expansion is completed, our share is expected to increase further (in the world’s capsule market).”

AIM TO DOMINATE LOCAL CAPSULE, FUNCTIONAL FOOD MARKETS

Suheung, founded in 1973, is ruling the capsule industry in South Korea with a 95% share of the local medical capsule market. In the local functional food sector, Suheung is the top original design manufacturer (ODM) and original equipment manufacturer (OEM) with a market share of 40%.

The company has been steadily growing with its sales nearly doubling to 595.7 billion won ($420 million) in 2021 from five years earlier.

It is expanding its business portfolios to grow into a global healthcare company by raising its presence based on its competitiveness accumulated around the world.

Suheung started its cosmetics business in 2018 with an acquisition of Hankook Cosmo Cosmetics, a local ODM.

“We will develop the cosmetics business as the next high value-added growth engine,” Yang stressed.

Write to Jung-Eun Kim at likesmile@hankyung.com
Jongwoo Cheon edited this article.