Hite Jinro to shut down Iksan soju plant after 69 years, shift production to Jeonju

Hite Jinro announced Thursday that it will shut down its soju plant in Ma-dong, Iksan, North Jeolla Province, ending 69 years of operation.

The Iksan plant was built in 1957 as the former Bobae Soju factory and will now begin winding down operations. Its production functions will be consolidated into the company's Jeonju plant.

The company cited the aging of the Iksan plant's facilities and its operating conditions as reasons for the closure. The plant posted sales of about 42.1 billion won ($31.4 million) last year, accounting for about 1.7 percent of Hite Jinro's total sales.

Modernizing the production facility and maintaining its output capacity would require upgrading equipment and expanding ancillary facilities such as material and product storage space, but the site is surrounded by residential areas, limiting room for expansion. The company said the nearby Jeonju plant already has the production facilities and infrastructure needed to absorb the additional output without building new facilities.

The Iksan plant will continue operating until Oct. 15. Hite Jinro will transfer production equipment and personnel to the Jeonju plant in stages immediately after the shutdown on Oct. 16.