HiteJinro to Halt 'PET Bottle Soju' Production at Iksan Plant... Operations to Consolidate at Jeonju Facility

Iksan Plant Surrounded by Residential Areas, Ongoing Complaints Over Noise
Gradual Relocation of Equipment and Personnel
Plan to Optimize Production System Efficiency

HiteJinro will shut down its Iksan plant in North Jeolla Province, which produces PET bottle soju, and integrate production into its Jeonju plant. The Iksan plant will cease operations from mid-October, and both production equipment and personnel will be gradually transferred to the Jeonju facility.

On September 9, HiteJinro announced that it is reorganizing its production bases to maximize efficient use of its existing facilities and infrastructure, and to minimize duplicate investment in production equipment and related amenities. By utilizing the already-operating Jeonju plant instead of building new production facilities, the company aims to reduce the burden of capital expenditure while simultaneously improving the efficiency of its production and logistics infrastructure, thereby enhancing flexibility in responding to changing market conditions.

When the Iksan plant was first established, the surrounding area was agricultural land on the city outskirts. However, large-scale residential complexes have since been constructed nearby, substantially altering the environment. As a result, there have been ongoing complaints from local residents regarding noise generated by the plant's operations.

HiteJinro explained that, from a facilities perspective, prolonged operations have led to aging, and investments are required to improve and maintain stability in production. Since the Iksan plant site is now surrounded by residential areas, there are limits to securing additional space. Constructing new facilities on an alternative site would involve significant new investment, from securing land to building the plant and installing equipment. In light of these considerations, the company decided to close the Iksan plant.

On the other hand, the Jeonju plant is already equipped with the necessary production facilities and infrastructure, allowing for production consolidation without additional new construction. Taking these circumstances into account, HiteJinro determined that leveraging the current Jeonju plant’s production infrastructure is the most suitable option for efficiently operating its future production system.

A HiteJinro representative stated, “This decision is not a short-term production adjustment, but a restructuring of our production system for long-term competitiveness and investment efficiency. We will maximize utilization of our existing production infrastructure to maintain a stable production base and build a system that allows us to respond more flexibly to market changes.”

This content was produced with the assistance of AI translation services.