Dongwon aims for No. 2 in bottled water market with capacity expansion

[Courtesy of Dongwon Group]

South Korea’s Dongwon Group has set the goal of becoming the No. 2 player in the bottled water market by enhancing production capabilities at its fourth factory.

The goal to diversify its business comes as Dongwon Group celebrates its 100th day of Kim Nam-jung’s tenure as chairman.

According to industry sources on Sunday, Dongwon Group is advancing procedures to expand its fourth mineral water factory in Eumseong, North Chungcheong Province. The company has already secured water intake permissions and aims to obtain building permits by October, with construction slated to commence by the end of the year. The new factory is expected to be operational by 2026.

With the fourth factory, Dongwon aims to become the second-largest player in the domestic mineral water market based on water intake capacity.

Currently, Dongwon ranks fifth in terms of sales and water intake. Its three mineral water existing factories in Yeoncheon, Gyeonggi Province, Goesan, North Chungcheong Province, and Wanju, North Jeolla Province, produce a combined 3,200-3,300 tons of water annually.

The new Eumseong factory will have a capacity of 1,500 tons per year, nearly 1.5 times the average output of the existing plants.

Once completed, Dongwon’s total intake capacity is projected to reach 5,000 tons annually. This capacity increase is expected to boost annual sales to 130 billion won ($94.3 million) from 100 billion won.

Kim’s leadership has significantly accelerated Dongwon Group’s diversification since his appointment on March 28.

In May, Dongwon Industries signed a 100 billion won contract with Hankook Made to construct two new 2,000-ton purse seiners, which are specialized vessels for catching tuna.

Additionally, Dongwon Systems completed a 95 billion won investment in a sterile beverage production plant in Hoengseong, Gangwon Province. This facility will reduce plastic usage in PET bottles by 20 percent while ensuring beverage sterility.

Dongwon Global Terminal Busan, an automated port that opened in April at Busan New Port, is expected to secure orders and yield significant results starting from the third quarter.

The terminal incorporates advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT).

Dongwon is also accelerating a 200 billion won project that involves creating Korea’s first salmon farm. The land purchase agreement for the 117,000 square meter aquaculture complex in Yangyang, Gangwon Province, is expected to be finalized within the third quarter.

Although this project has faced delays since 2020, construction is scheduled to begin by fall, aiming for completion next year.

From next month, Dongwon Systems will start producing next-generation battery cans (46mm diameter, 80mm height), which have been adopted as a standard by Tesla.

The industry expects Dongwon Systems to begin supplying battery cans to LG Energy Solution in the second half of this year. Dongwon’s battery materials sales are projected to rise from 30 billion won last year to the 70 billion won range this year.

Dongwon is also streamlining its organizational structure, including the merger of Dongwon F&B with its subsidiary Dongwon Dear Food.

This merger aims to create synergies in both online and offline food and beverage sales. The group plans to downsize its domestic offline sales team while strengthening its online and international business operations.

Dongwon Industries has also renamed its HR Support Office to the Talent Strategy Office, reflecting a revamp of its human resources and training functions.