[사진=CJ제일제당]
[서울경제TV=이혜연기자] CJ CheilJedang is expanding its overseas food production capabilities and accelerating ‘K-Food global territorial expansion.’
CJ CheilJedang announced on the 21st that it will build new factories in Hungary, Europe, and South Dakota, USA. Through this, the strategy is to expand business in Europe, a new strategic region, and strengthen its market position in the United States, a key country.
CJ CheilJedang’s ‘New European K-Food Factory’ has confirmed the site in ‘Dunavarsány, near Budapest, Hungary, and started design. This factory will invest approximately KRW 100 billion to be built on a site (115,000 m2) the size of 16 soccer fields. It will be equipped with a state-of-the-art automated production line and will produce ‘Bibigo dumplings’ and sell them to the European market from the second half of 2026. . There are plans to expand the bibigo chicken production line in the future.
CJ CheilJedang is actively responding to the demand in the European dumpling market, which is growing by more than 30% annually, through its ‘Hungarian factory’, and will expand its European business to central and eastern Europe and the Balkan Peninsula, including nearby Poland, the Czech Republic, and Slovakia, using Hungary as a base. The strategy is to begin full-scale expansion.
In relation to this, we secured the necessary support for factory construction from the Hungarian government and announced construction plans with the Hungarian Investment Authority (HIPA) the day before.
In the United States, its subsidiary Schwan’s has begun construction of a new North American Asian food plant in Sioux Falls, South Dakota, with the goal of completion in 2027. This factory will be built on a site the size of 80 soccer fields (575,000 m2). The initial investment amount is approximately 700 billion won. When completed, it will be the largest Asian food manufacturing facility in North America, equipped with steamed dumpling and egg roll production lines, wastewater treatment facilities, and a logistics center, and will serve as a production base in the central United States.
South Dakota, located in the center, has excellent road and aviation infrastructure, and the state government is implementing business-friendly policies, making it an optimal location for a production base.
CJ CheilJedang plans to further solidify Bibigo’s No. 1 position in the U.S. B2C dumpling market (42% share) with the ‘South Dakota factory’ at the forefront. As bibigo dumplings recorded a sales growth rate of 33% from January to September of this year, which is more than twice the growth rate of the entire US B2C dumpling market (15%), the strategy is to achieve a super-gap competitiveness by increasing production capacity. In addition, the company plans to increase sales in the local roll market, which is worth about 1 trillion won, to further solidify its status as the ‘No. 1 Asian food company in the United States.’
On the 13th, a groundbreaking ceremony was held at the factory site with Park Min-seok, CEO of CJ CheilJedang’s food business division, other executives, and South Dakota Governor Kristi Noem in attendance. CEO Park said, “This investment is of great strategic importance to respond to the increasing demand for K-food in the United States.”
The reason CJ CheilJedang is actively expanding its production capacity is to give more strength to its global food business, which has high growth potential. CJ CheilJedang’s overseas food business sales grew by more than 70% over four years, from KRW 3.154 trillion in 2019 to KRW 5.3861 trillion last year. Over the same period, the proportion of overseas sales in total food sales also increased from 39% to 48%.
Among these, Europe is a strategic region for CJ CheilJedang’s ‘K-Food global territorial expansion’, with sales growing 40% in the third quarter of this year compared to the previous year, and the United States is a key market, accounting for more than 80% of overseas food business sales. An official from CJ CheilJedang said, “Through preemptive investment in production capacity for the future, we will take the lead in the global spread of K-food and become a ‘global leading company’ in name and reality.” /[email protected]
**What are the potential economic implications for Hungary and South Dakota, specifically addressing job creation and local economic growth, as a result of CJ CheilJedang establishing factories in these locations?** _This question prompts analysis of the specific locations’ impact, going beyond general market access._
## World Today News: CJ CheilJedang’s Global K-Food Expansion
**Host:** Welcome to World Today News! Today we’re delving into the exciting world of K-Food with two esteemed guests to discuss CJ CheilJedang’s ambitious expansion plans.
**Guests:**
* **Dr. Lee Eun-jung**, Professor of Food Science and Economics at Seoul National University
* **Mr. Kim Jae-Hyun**, CEO of Seoul Food Consulting
**(Theme 1:
Global Market Growth and K-Food)**
**Host:** CJ CheilJedang’s announcement makes it clear that
K-Food is experiencing a global boom. Dr. Lee, can you shed light on the driving
forces behind this trend and the specific factors
contributing to K-Food’s popularity internationally?
**Dr. Lee:** (Responds, explaining factors like Hallyu wave influence, unique flavors, health trends, and accessibility)
**Host:** Mr. Kim, from a business perspective, what do you see as the key
challenges and opportunities that CJ CheilJedang might encounter as they expand into these new markets?
**(Theme 2:
Strategic Location Choices - Europe and the USA)**
**Host:**
CJ CheilJedang’s decision to establish factories in Hungary and South Dakota
is strategically significant. Mr. Kim, what
advantages do these locations offer in terms of logistics, market access, and regulatory environment?
**Mr. Kim:** (Discusses advantages like central location, infrastructure, government support, and access to local workforce)
**Host:**
Dr. Lee, given the European and American
market dynamics, what specific adaptations might CJ CheilJedang
need to make in terms of product offerings, marketing strategies, or production processes to ensure success?
**(Theme 3:
Sustainability and Long-Term Impact)**
**Host:**
As a leading food company, CJ CheilJedang
holds a responsible position. Dr. Lee, how can CJ
CheilJedang’s expansion plans be aligned with sustainable
practices and contribute positively to the local communities
where they operate?
**Dr. Lee:** ( Discusses topics like sourcing local ingredients, environmental responsibility, contributing to local economies)
**Host:**
Mr. Kim, looking towards the future, what
potential long-term impact do you foresee
CJ CheilJedang’s
expansion having on the global food industry, particularly in
regards to the
perception and availability of K-Food?
**(Concluding Remarks)**
**Host:**
Thank you both for sharing your valuable insights. Clearly,
CJ CheilJedang’s
expansion
represents
an exciting chapter for K-Food on the global stage.
We can expect
exciting
developments
as this journey unfolds.
