South Korean food company CJ CheilJedang announced Thursday it plans to build new production facilities in Hungary and the US as part of efforts to expand its presence in global markets.

According to the company, the new Hungarian plant will be located on a 115,000-square-meter site in Dunavarsany, a town near the Budapest metropolitan area. With an investment of 10 billion won ($7.2 million), the new facility will feature advanced automated production lines. Production is expected to begin in the second half of 2026, focusing on the company's Bibigo brand dumplings, with plans to add chicken production lines later.

With the new plant, CJ CheilJedang aims to meet the growing demand in Europe’s dumpling market, which is expanding by over 30 percent annually. The facility will also serve as a base for entry into nearby European markets, including Poland, the Czech Republic, Slovakia and the Balkan region. The company added that it has also secured support from the Hungarian government for the construction.

In the US, Schwan’s Company, the frozen food maker acquired by CJ CheilJedang in 2019, has also started building a production facility in Sioux Falls, South Dakota, set for completion by 2027. The plant, focused on Asian foods, will be built on a site spanning 575,000 square meters with an initial investment of 700 billion won.

The facility will include production lines for steamed dumplings and egg rolls, a wastewater treatment system, and a logistics center, making it the largest Asian food production facility in North America. Sioux Falls was chosen for its strong transportation infrastructure and business-friendly policies, the company explained.

CJ CheilJedang said the new US plant will boost Bibigo’s production capacity to solidify its leadership in the US dumpling market, where the brand holds a 42 percent share. From January to September this year, the company saw Bibigo dumpling sales in the US grow 33 percent.

These investments reflect CJ CheilJedang’s commitment to expanding its global food business. Its overseas food sales grew over 70 percent in the past four years, from 3.15 trillion won in 2019 to 5.39 trillion won in 2023. During the same period, the share of overseas sales in its total food revenue also increased from 39 percent to 48 percent.

CJ CheilJedang highlighted Europe as a key growth region, with third-quarter sales this year up 40 percent year-on-year, while the US accounts for more than 80 percent of CJ CheilJedang’s overseas food revenue. “With proactive investments in production capacity, we aim to lead the global expansion of K-food and establish ourselves as a leading global food company,” a CJ CheilJedang official said.

The company currently operates 20 food production facilities in the US, including those acquired through Schwan’s. In Europe, CJ CheilJedang acquired Germany-based food company Mainfrost in 2018 and established subsidiaries in France and Hungary earlier this year. The company also built an export-focused plant in Vietnam in 2022 and acquired a contract manufacturing facility in Australia in 2023.