South Korean food giant CJ CheilJedang is setting up a new production facility in Hungary to act as a "hub" for markets in the region.

The company is building its Hungarian plant in the town of Dunavarsány, near Budapest.

The group is spending around Won100bn ($71.4m) on the facility, which will span 115,000m². It is expected to start operations in the second half of 2026.

The plant will produce CJ CheilJedang's Bibigo dumplings for European markets, with plans to also introduce a Bibigo chicken production line at the site.

CJ CheilJedang plans to use Hungary as a base for further expansion into central and eastern Europe, including Poland, the Czech Republic, Slovakia and the Balkans.

In the same statement, the company said it is setting up a US plant in Sioux Falls, South Dakota. Three years ago, CJ CheilJedang outlined plans for a factory in the same city. Just Food has contacted the group to confirm if this week's statement is about the same project.

CJ CheilJedang said this week the South Dakota plant will involve an investment of over Won700bn and is scheduled for completion in 2027.

Once operational, the facility will produce Bibigo steamed dumplings and egg rolls for the foodservice industry, CJ CheilJedang said.

Minsok Pak, the CEO of CJ Foods, said: “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.”

The projects in Europe and the US come after CJ CheilJedang has seen growing international sales, it said.

Over the past four years, the company's overseas food sales have increased by more than 70%, growing from Won3.15tn in 2019 to Won5.38tn last year.

Overseas markets account for 48% of its food sales, up from 39% in 2019.

In June last year, CJ CheilJedang announced a manufacturing contract to serve the Australian market.

Through a tie-up with an unnamed local manufacturer, the company is supplying to Australian food retailer Woolworths.

"South Korea’s CJ CheilJedang to open factory in Europe" was originally created and published by Just Food, a GlobalData owned brand.

 

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