Aerial view of the Hungarian factory (Image provided by CJ Cheiljedang)
SEOUL, Nov. 21 (Korea Bizwire) – CJ CheilJedang, a leader in Korean food manufacturing, is intensifying its global expansion by committing ₩800 billion to build state-of-the-art production facilities in Hungary and South Dakota. The investments are aimed at bolstering its market presence in Europe and the U.S., two critical regions in its international growth strategy.
Strategic Moves in Europe
The company’s first factory in Europe will be constructed near Budapest, Hungary, on a 115,000-square-meter site, equivalent to 16 soccer fields. With an initial investment of ₩100 billion, the facility will feature advanced automated production lines and is expected to begin operations in late 2026. It will focus on manufacturing Bibigo-branded dumplings, with plans to expand to chicken products.
This factory is positioned to capitalize on the rapidly growing European dumpling market, which is experiencing an annual growth rate of over 30%. Hungary will serve as a central hub for distribution to nearby markets such as Poland, the Czech Republic, and the Balkans. The Hungarian government has pledged support for the project, underscoring its strategic importance.
Scaling Up in the U.S.
In the U.S., CJ CheilJedang’s frozen food subsidiary, Schwan’s, has begun construction on a new facility in Sioux Falls, South Dakota. Scheduled for completion by 2027, the plant will span 575,000 square meters—roughly the size of 80 soccer fields—and require an initial investment of ₩700 billion.
The factory will house production lines for steamed dumplings and egg rolls, along with wastewater treatment facilities and a logistics center, making it the largest Asian food manufacturing facility in North America. South Dakota’s favorable infrastructure and business-friendly policies were key factors in the site selection.
This expansion aims to solidify Bibigo’s leadership in the U.S. consumer dumpling market, where it currently holds a 42% share and has posted a sales growth rate of 33%—double the overall market growth rate of 15%. The company also seeks to expand its presence in the $1 billion U.S. roll market, further cementing its status as a leading Asian food brand.
CJ CheilJedang headquarters in Seoul (Yonhap)
Financial Momentum and Global Vision
CJ CheilJedang’s overseas food sales have surged by over 70% in four years, climbing from ₩3.15 trillion in 2019 to ₩5.39 trillion in 2022. Europe and the U.S. are key growth areas, with Europe seeing a 40% year-over-year sales increase in the third quarter of 2023 and the U.S. accounting for over 80% of international food sales.
These investments come as CJ CheilJedang explores the sale of its bio division, which contributes 30% of its operating profits. Proceeds from this sale are expected to fuel additional investments in global food operations, including mergers and acquisitions.
The company’s ambitious strategy builds on a history of global expansion, including its acquisition of U.S.-based Schwan’s for ₩2 trillion in 2018 and its establishment of production facilities in Germany, Vietnam, and Australia.
“Through proactive investments in production capacity, we aim to lead the global spread of K-food and transform into a truly global food company,” said a CJ CheilJedang spokesperson.
These developments underline CJ CheilJedang’s commitment to scaling its operations and securing its position as a top player in the global food industry.
Ashley Song (ashley@koreabizwire.com)
