CJ Cheiljedang Announces 800 Billion Won Investment for New Production Facilities in Europe and U.S.

Seoul: South Korean food giant Cheiljedang Corp. announced plans to invest 800 billion won (US$571.3 million) in building new production facilities in Europe and the United States. This strategic move aims to enhance the company's overseas sales and expand its global footprint.According to Yonhap News Agency, the company will establish a state-of-the-art plant near Budapest, Hungary, covering an area of 115,000 square meters. Set to commence operations in the second half of 2026, this facility will focus on producing CJ Cheiljedang's flagship bibigo dumplings, catering to the European markets. The plant is also designed for future expansion to include bibigo chicken production, marking its first owned production facility in Europe.The expansion aligns with the company's recent sales surge overseas, fueled by the rising global popularity of Korean food and beverages. CJ Cheiljedang's overseas sales soared to 5.4 trillion won last year, up from 3.15 trillion won in 2019. Consequently, the proportion of over seas sales in the company's total food sales increased from 39 percent to 48 percent during this period.CJ CheilJedang emphasized that the Hungarian plant will enable the company to meet the growing demand for dumplings in Europe. It will also serve as a strategic hub for expanding the company's business into Central and Eastern Europe, as well as the Balkans.In the United States, CJ Cheiljedang's subsidiary, Schwan's Company, has initiated the construction of an Asian food production facility in Sioux Falls, South Dakota. Scheduled for completion in 2027, this facility will produce egg rolls and dumplings under the bibigo brand. The company aims to bolster its production capacity in the U.S. to maintain its dominant position in the American dumpling market, where it currently holds a 42 percent market share.The U.S. remains CJ Cheiljedang's primary strategic market, contributing over 80 percent of its overseas food sales. Meanwhile, Europe has emerged as a rapidly growing market, with sales in the July -September period of this year increasing by 40 percent on-year.To support its global growth ambitions, CJ Cheiljedang has been actively expanding its production capabilities. The company operates 20 facilities in the United States and acquired Germany's Mainfrost in 2018. Additionally, it established local units in France and Hungary in May 2024.