May 30, 2024
Schwan’s Inc. took a major step toward building a new Asian food production facility in Sioux Falls, completing the purchase of 142 acres of land in Foundation Park today.
The company plans to open a regional office downtown this year and begin construction on a 700,000-square-foot facility there.
Schwan’s, a US-based food company and subsidiary of South Korea’s CJ Foods, originally announced plans for a new Sioux Falls plant in 2021 that was “expected to cost hundreds of millions of dollars and add more than 600 new employees,” the company said in a statement.
A regional office will be built downtown, but beyond that, a location has yet to be determined, according to a spokesperson. The company said its initial plans are to “add 50 high-paying jobs, with the potential to expand to 100 once the production facility is complete.” These jobs will “support the continued expansion and operation of the new manufacturing facility,” the company said.
The company worked with the State of South Dakota and the City of Sioux Falls to design a state-of-the-art wastewater treatment facility that Schwan’s will build at its new manufacturing facility.
The company said the wastewater treatment facility will allow it to discharge into the city “with minimal impact to the city’s current operations.”
“We’d like to thank all of South Dakota’s state and local officials who helped us move this project forward in a big way that will ultimately help meet the needs of our retail and foodservice customers,” said CEO Dimitrios Smyrnios, who is stepping down this week.
“This project will create significant production capacity for Schwan’s, continue to support our market share-leading Bibigo brand and drive future innovation and growth in the Asian foods category. I would like to personally thank Governor Kristy Noem and her team for their leadership and commitment to this plan. Without her unwavering support, this project would not have been possible. It’s clear that South Dakota is open for business.”
“Schwan’s recognizes the excellent business environment South Dakota has to offer. I know their confidence in South Dakota is not misplaced and I appreciate the additional investment they are making,” Noem said in a statement.
The new manufacturing facility will use state-of-the-art automated production lines to produce Asian-inspired foods primarily for Schwan’s leading Korean food brand, Bibigo. Food products produced will include a wide range of shelf-stable and frozen meals, side dishes, snacks and appetizers. The new manufacturing campus will include a warehouse and distribution center, shipping and receiving docks and office space.
“Our investment in a world-class Asian-style food facility in South Dakota will help strengthen our position in one of the fastest-growing food sectors in the United States,” said incoming CEO Brian Seig.
“We look forward to continuing to work with state and local officials to build a facility that will benefit South Dakota residents and our business group.”
“The U.S. market continues to deliver high growth for CJ Foods, and our ability to continue to expand our product portfolio to meet growing consumer demand is critical to our strategy,” said Min-seok Park, CEO of CJ Foods. “This facility will allow us to further accelerate the growth of K-Food and other Asian cuisines. We appreciate the support of local and state officials and look forward to contributing to our new base in South Dakota.”
For Foundation Park, this major project will accelerate development in the northern part of the development park, said Bob Mant, president and CEO of the Sioux Falls Development Foundation.
“It’s our anchor tenant and it’s definitely going to be a good fit for anyone else looking at this particular location,” he said. “This is a big win for the city of Sioux Falls. Having a business like CJ’s and the many people that will be employed there and adding a new facility to our downtown is great news for Sioux Falls.”
CJ CheilJedang acquired Minnesota-based Schwan’s in 2019. The company’s subsidiaries focus on food sold at retail and grocery stores, foodservice facilities, Schwan’s manufacturing and logistics operations, and a range of professional and management services.
The Schwan family remained as minority shareholders in the businesses acquired by CJ Foods. Members of the Schwan family were the sole owners of the traditional home delivery business launched by Marvin Schwan in 1952, which was renamed Hielo.
Schwan’s also produces other food brands such as Red Baron, Freschetta, Tony’s Pizza, Mrs. Smith’s, Edwards Desserts and Pagoda.
“Sioux Falls is excited to welcome CJ Foods USA to our community,” Mayor Paul TenHaken said in a statement. “They saw what a pro-business city and state we are, and we thank Gov. Kristi Noem and her team for working with us locally to bring this impactful investment to Foundation Park, which will bring hundreds of quality jobs to Sioux Falls and further diversify our economy, benefiting the entire community.”
Mundt agreed that the jobs added at the new Sioux Falls facility will be valuable.
“I think the plant has been redesigned to be very high-tech, very advanced, very futuristic, and I think the jobs there will be welcomed in the area,” he said. “I think it will take time to scale up to that level, but I think those jobs will be in-demand jobs, and we look forward to helping fill those jobs.”
