1. What Happened? : ₩71.3 Billion Investment in Automated Warehouse
Samyang Packaging is investing ₩71.3 billion (18.78% of its capital) to build an automated warehouse, aiming to improve logistics efficiency and cost competitiveness. Construction is scheduled to begin in January 2026 and be completed by June 2027.
2. Why? : Addressing Poor Performance and Securing Future Growth
Samyang Packaging reported a disappointing first quarter of 2025, with an 11.4% decrease in sales and a swing to an operating loss. Intensified competition in the PET container market and a slowdown in related industries are the main culprits. This investment aims to address these challenges and secure future growth drivers. Despite steady growth in the aseptic beverage OEM business and the potential of the Recycling business, improving profitability is a pressing issue.
3. What’s Next? : Expected Effects and Risks
- Positive Effects:
- Increased logistics efficiency and cost reduction
- Improved productivity and market responsiveness
- Strengthened ESG management
- Risks:
- Burden of initial investment costs
- Potential delay in performance recovery
- Insufficient investment effect
- External environmental changes (exchange rates, interest rates, oil prices, etc.)
4. What Should Investors Do? : Neutral Investment Opinion, Continuous Monitoring Required
While this investment is positive in the long term, short-term financial burdens and uncertainties regarding performance recovery must be considered. Investors should continuously monitor the investment execution process, improvements in logistics efficiency, changes in related industries, and the performance of the Recycling business.