- The new plant in Hungary to serve as a gateway for expansion into Central and Eastern Europe and the Balkans
- Construction begins in Sioux Falls, South Dakota to establish a Midwestern production hub and strengthen the leading position in the U.S. dumpling market
- Total investment of KRW 800 billion to bolster overseas food business, aiming to become a global leading food company
A bird's eye view of CJ CheilJedang's new plant in Hungary
CJ CheilJedang (CJCJ) is accelerating its Global Korean Food Expansion plans by adding overseas production capacity.
CJ Foods, a food business unit of CJCJ, said it is building new food manufacturing facilities in Hungary and South Dakota, USA. The company aims to scale up its operations in Europe, a key region for future growth, while solidifying its market position in the U.S.
CJ has secured a site for the new European K-food factory in Dunavarsány, near Budapest, Hungary, and has begun designing the facility. This plant, which will be built on a site covering an area of 115,000 square meters (approximately the size of 16 soccer fields), will be equipped with state-of-the-art automated production lines. With an investment of around KRW 100 billion, the Hungary plant will begin producing bibigo Dumplings in the second half of 2026 for the European market. Plans to add a bibigo Chicken production line are also in place for future expansion.
The Hungary plant will help CJ Foods meet the growing demand for dumplings in the European market, which is expanding at an annual rate of over 30%. The company also plans to use Hungary as a base for further expansion into Central and Eastern European countries including Poland, the Czech Republic, Slovakia, as well as the Balkans. Hungary offers an ideal environment for food production in Europe due to the low cost of raw materials (duty-free within the EU) and logistics.
CJ has secured support from the Hungarian government for the construction of the plant. The company held a joint event with the Hungarian Investment Promotion Agency (HIPA) yesterday to announce the plant's construction plans.
CJ Schwan’s, the U.S. affiliate of CJ Foods, has begun construction on a new Asian-style food manufacturing facility at its 575,000-square-meter site in Sioux Falls, South Dakota. The project involves an initial investment of over KRW 700 billion (USD 500 million). Set to be completed in 2027, the facility will include production lines for bibigo steamed dumplings and egg rolls sold in the food-service industry, and a warehouse, distribution center, and office space.
South Dakota was chosen for its central location, robust infrastructure with interstate highways and air transportation, a strong education system to train and recruit the plant’s workforce, and a favorable business environment with strong support from local and state governments. This strategic investment will enhance CJ Foods’ ability to efficiently serve the growing demand for Asian food across North America.
The company plans to further strengthen its leadership in the U.S. B2C dumpling market, where its bibigo brand holds a 42% market share. From January to September of this year, bibigo dumplings recorded a 33% year-on-year sales growth, more than double the overall growth rate of the U.S. B2C dumpling market (15%) during the same period. Additionally, the company aims to increase sales in the U.S. roll market, which is valued at over KRW 1 trillion (USD 700 million) annually, cementing its position as the leading Asian food manufacturer in the country.
The company held a groundbreaking ceremony on November 13th in Sioux Falls, which included CJ Foods CEO Minsok Pak, CJ Schwan’s CEO Brian Schiegg, and South Dakota Governor Kristi Noem along with other state, local and civic leaders. “Strategically, this investment in the US market is vitally important to our ability to meet the growing consumer demand for Korean food and other Asian cuisines.” said Pak, “and we appreciate the support we have received from the state of South Dakota.”
CJ’s investment in expanding production capacity reflects its commitment to further scale up its fast-growing global food business. The company’s overseas food sales have grown more than 70% over the past four years, from KRW 3.15 trillion in 2019 to KRW 5.381 trillion last year. During this period, the proportion of overseas sales as a percentage of total food sales increased from 39% to 48%.
Among the global markets, Europe is a strategic region for CJ's Global K-Food Expansion plans, with sales in the third quarter of this year growing 40% year-on-year. The U.S. remains a key market, accounting for more than 80% of global food business sales.
“Through proactive investment in production capabilities, we are poised to lead the globalization of K-food and establish ourselves as a true industry leader,” said a CJ spokesperson.
CJ has been steadily expanding its overseas production facilities. In the U.S., the company operates 20 food production facilities, including the Schwan’s plants acquired in 2019. In Europe, it secured its first production base by acquiring the German frozen food company Mainfrost in 2018, and established subsidiaries in France and Hungary in May of this year. In 2022, the company completed the Kizuna Plant in Vietnam, which serves as a production hub for Vietnam and neighboring countries. Recently, CJ also secured an OEM facility in Australia to produce dumplings and kimchi locally.
