CJ CheilJedang to push Bibigo dumplings in U.S. and Europe with $571 million investment

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CJ CheilJedang to push Bibigo dumplings in U.S. and Europe with $571 million investment

Published: 21 Nov. 2024, 15:21 Updated: 21 Nov. 2024, 19:54

CHO YONG-JUN
[email protected]

Audio report: written by reporters, read by AI

A render of CJ CheilJedang's upcoming food production facility in Dunavarsany, Hungary [CJ CHEILJEDANG]

CJ CheilJedang will invest 800 billion won ($571 million) the construction of new food manufacturing facilities in the United States and Hungary, the Korean food company said Thursday.

The food company selected Dunavarsany, south of the capital city of Budapest, as its European manufacturing hub. It will spend 100 billion won on manufacturing facility, on a 115,000-square-meter (28.4-acre) site, which will produce Bibigo dumplings and later expand to fried chicken.

The Hungarian factory will supply Bibigo dumplings across Europe — a food market that grows 30 percent annually.

“The company also plans to use Hungary as a base for further expansion into Central and Eastern European countries, including Poland, the Czech Republic and Slovakia, as well as the Balkans,” CJ CheilJedang said.

CJ CheilJedang will also invest 700 billion won into a new U.S. factory is located in Sioux Falls, South Dakota. Schwan’s Company, a food firm CJ CheilJedang acquired in 2018, will operate the facility. Built on a 575,000 square meter site, it will be the largest Asian food manufacturing facility in North America upon its completion in 2027.

The U.S. factory will house production lines for the company’s Bibigo steamed dumplings and egg rolls, which the company sells to other businesses.

“South Dakota was chosen for its central location, robust infrastructure […] and favorable business environment with strong support from local and state governments,” CJ CheilJedang said in a press release Thursday.

The company has a 42 percent share of the consumer dumpling market in the United States, which Schwan’s expects to increase with the completion of the South Dakota factory. It aims to sell more rolls in the country as well.

The groundbreaking ceremony took place Nov. 13 with Schwan’s CEO Brian Schiegg, South Dakota Gov. Kristi Noem and CJ CheilJedang Food CEO Pak Min-sok in attendance.

CJ CheilJedang and Schwan’s currently operate 20 food production facilities in the United States. It also operates a production base in Germany, having acquired German frozen food firm Mainfrost in 2018.

BY CHO YONG-JUN [[email protected]]