Schwan’s Company, a leading US-based food manufacturer and subsidiary of South Korea’s CJ CheilJedang (also known as CJ Foods), has officially broken ground on its 700,000-square-foot Asian-style food production facility in Sioux Falls, South Dakota.
The new plant, located at Foundation Park in northwest Sioux Falls, marks a significant milestone in the company’s expansion plans and a major investment in South Dakota's economy. This ambitious project, which was first announced in 2021, will serve as a key production hub for Schwan’s top-selling Korean food brand Bibigo, known for its egg rolls, steamed dumplings, and other Asian cuisine products.
The new manufacturing campus will span 142 acres and includes not only state-of-the-art production lines for frozen and shelf-stable Asian foods, but also a warehouse and distribution center, shipping and receiving docks, and office space. While the first phase of construction is expected to be completed by 2027, the total investment, which includes land acquisition and future developments, is worth a billion dollars of investment.
Schwan’s has already closed on the land purchase for the facility, valued at approximately $24 million at $4 per square foot. The company has worked closely with local and state officials to design state-of-the-art wastewater treatment facility on-site to minimize environmental impact and integrate seamlessly with Sioux Falls' existing infrastructure.
Upon completion, the facility will create approximately 600 new jobs for Sioux Falls, many of which will be high-tech positions in robotics, automation, and systems management, helping to address South Dakota’s low unemployment rate. In addition to the manufacturing facility, Schwan’s will also open an regional office in downtown Sioux Falls, where 50 high-paying jobs will be created initially, with the potential to expand to 100 once the plant is operational.
Governor Kristi Noem has been a strong proponent of Schwan’s investment in Sioux Falls, emphasizing the state’s low tax rates, business-friendly regulations, and workforce development efforts.
CJ Foods has seen 64% sales hike from 2019 to 2022 since its acquisition of Schwan Company, known for its popular food brands including Red Baron, Freschetta, Tony's, Mrs. Smith's, and Edwards Desserts. The new Sioux Falls facility will play a critical role in scaling production for Bibigo, which has rapidly become the number one Korean food brand in the US. CJ Foods, the parent company of Schwan’s, sees this facility as an essential part of its global strategy to meet rising consumer demand for Korean and other Asian cuisines.
Foundation Park, the site of Schwan’s new facility, is rapidly becoming a major business hub for Sioux Falls. The project is helping to jumpstart development in the northern section of the park, with local leaders, including Mayor Paul TenHaken and Governor Kristi Noem showing optimism about the area’s future.
Construction is set to begin in early 2025, with the facility expected to be fully operational by 2027. As Schwan’s embarks on this exciting new chapter, both the company and the city of Sioux Falls are poised for growth, innovation, and success in the rapidly evolving food industry.
Prash Bajracharya is a Young Professional at the East West Center in Washington. She is currently pursuing her master's degree at McCourt School of Public Policy, Georgetown University.