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Schwan's expands Asian food production in South Dakota with multi-million dollar investment
FoodBev Media

FoodBev Media

4 June 2024

Schwan's expands Asian food production in South Dakota with multi-million dollar investment

Schwan's Company, a US food manufacturer and a subsidiary of South Korea's CJ Foods, has announced plans to expand its operations in South Dakota with the purchase of a 142-acre site in Sioux Falls for a new 700,000-square-foot Asian food production facility. The new plant, which is projected to cost hundreds of millions of dollars, will produce a range of Asian-style meals, sides, snacks and appetisers under Schwan's top-selling bibigo brand and other Asian food lines. The facility is expected to create more than 600 new jobs. In addition to the production plant, Schwan's said it will open a regional office in downtown Sioux Falls to support the expansion, initially adding 50 high-paying jobs with the potential to grow to 100 positions once the manufacturing facility is complete. The company has collaborated with the State of South Dakota and the City of Sioux Falls to design a wastewater treatment facility to be built on the new site, enabling Schwan's to minimise the impact on the city's existing operations. "This project will create significant new production capacity for Schwan's, enabling us to continue to support our market-share leading bibigo brand and drive future innovation and growth in the Asian food category," said outgoing Schwan's CEO Dimitrios P Smyrnios. Incoming CEO Brian Schiegg said the investment will help strengthen Schwan's position in one of the fastest-growing food segments in the US. South Korea's CJ Foods, Schwan's parent company, said the new facility will accelerate the growth of K-Food and other Asian cuisines in the American market, which continues to deliver high growth for the global lifestyle company. South Dakota governor Kristi Noem praised Schwan's for recognising the state's "superior business climate" and expressed confidence that the company's investment will greatly benefit residents. The new manufacturing campus will feature automated production lines, a warehouse and distribution centre, shipping and receiving docks, and office space. Construction is expected to commence shortly, with an anticipated completion date not yet disclosed. Schwan's, based in Minnesota, is a leading US manufacturer and marketer of frozen foods sold through retail and foodservice channels. In addition to its bibigo brand, the company's portfolio includes popular pizza, dessert and Asian food labels.

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