A CJ CheilJedang plant in Fullerton, Calif. / Courtesy of CJ CheilJedang

South Korean food giant Cheiljedang said Thursday it will invest 800 billion won ($571.6 million) to build new production facilities in Europe and the United States as part of efforts to boost its overseas sales.

The company said it will establish a new plant near Budapest, Hungary, in an area covering 115,000 square meters. This facility, slated to begin operations in the second half of 2026, will produce CJ Cheiljedang's flagship bibigo dumplings for European markets.

The plant is poised for further expansion to accommodate bibigo chicken production.

It will be the company's first own production facility in Europe.

The move follows recent hikes in the company's overseas sales, driven by the increasing popularity of Korean food and beverages in global markets.

Overseas sales of CJ Cheiljedang surged to 5.4 trillion won last year from 3.15 trillion won in 2019.

The proportion of overseas sales in total food sales also jumped from 39 percent to 48 percent over the cited period, according to the company.

CJ CheilJedang said the Hungarian plant will help the company actively respond to rising demand for dumplings in Europe, and serve as a strategic hub for expanding the company's European business into Central and Eastern Europe, as well as the Balkans.

In the U.S., its subsidiary Schwan's Company has started building an Asian food production facility in Sioux Falls, South Dakota.

Following its completion in 2027, the facility will produce egg rolls and dumplings for the bibigo brand, according to the company.

By bolstering its production capacity in the U.S., CJ CheilJedang aims to further solidify its leading position in the American dumpling market, where it currently holds a 42 percent market share, it added.

The U.S. remains CJ CheilJedang's primary strategic market, accounting for over 80 percent of its overseas food sales. Europe, however, has emerged as a rapidly growing market, with sales in the July-September period of this year surging 40 percent on-year.

To support its global ambitions, CJ CheilJedang has been actively expanding its production footprint.

The company currently operates 20 facilities in the United States and acquired Germany's Mainfrost in 2018. Additionally, it established local units in France and Hungary in May 2024. (Yonhap)