27-06-2025
Mama maker shelves expansion in Hungary
Thai President Foods Plc, the manufacturer of Mama instant noodles, has postponed further investment in Hungary, citing rising costs and an unfavourable labour policy.
Pun Paniangvait, general manager of Thai President Foods, said earlier this year the company planned to double production capacity in the country in 2025.
This plan included adding a new facility at the existing site, which only utilises half of the available space.
Mr Pun said the company planned to take Thai employees to work at the new facility, given their expertise in the manufacturing process.
However, the Hungarian authorities only grant work permits to foreign workers for a period of 2-3 years.
Furthermore, construction costs and energy prices for the area around the facility have risen, extending the return on investment period to seven years, which does not align with the company's goals, he said.
As a result, the company will continue to operate at its current facility, said Mr Pun.
The company postponed the investment until policies better aligned with the company's plans are implemented.
The Hungarian facility has a production capacity of 600,000 pieces a day, he said.
As of January 2025, the company was operating 29 pieces of production machinery in Thailand.
Thai President added new machinery to its Lamphun plant last year and plans to add machinery at its Rayong plant this year, said Mr Pun.
The production machinery is made to order by the manufacturer and requires a substantial amount of time to prepare. The waiting period for the machinery is longer than normal, he said.
In Thailand, the company's production capacity is 7 million pieces a day.
The company reported rising demand for big packs of Mama noodles as well as premium items such as Mama Ok.
This spike in demand for premium products added capacity constraints for this segment, including the production of Mama Ok, said Mr Pun.
However, its more affordable products, such as 7-baht packs of Mama noodles, still have capacity to spare, allowing for potential expansion, he said.
