CJ Schwan’s breaks ground on estimated $1B South Dakota investment

Sioux Falls poised to be 'eggroll capital of the world' with plant spanning 12 football fields

CJ Schwan’s, also known as Schwan’s Co., officially has started work on a 142-acre project to bring an Asian food production facility to Sioux Falls, while acknowledging that this could be the start of an even broader operation in the community.

The 700,000-square-foot building will be one of the world’s largest Asian food factories, spanning the length of more than 12 football fields at Foundation Park in northwest Sioux Falls and include two state-of-the-art production lines, plus room for expansion.

It will support the company’s bibigo brand, making egg rolls and steamed dumplings.

The project also includes a wastewater treatment plant, warehouse and distribution center, shipping and receiving docks and office space.

About 600 jobs will be created once the production facility is complete, with an additional 50 jobs planned to be located in downtown Sioux Falls, where the company has leased space at River Centre with plans to renovate it. Potentially, there could be more than 100 jobs in the office building at 10th Street and River Road as manufacturing begins.

“Today is an incredibly exciting moment for us and an important milestone in our company’s history,” said Brian Schiegg, CEO of U.S. operation CJ Schwan’s.

Today’s groundbreaking drew the company’s top leadership, including Schiegg and Minsok Pak, CEO of the parent company, South Korea-based CJ Foods.

“I would not have missed this for anything,” Pak said. “Korea is only about half of our business. The rest of our business around the world, that’s where we see the growth right now.”

CJ Foods acquired a majority stake in Minnesota-based Schwan’s retail and food service business in 2019. The frozen-food home delivery company, which recently ended operations, was not part of that deal.

The Sioux Falls facility will produce egg rolls and dumplings for bibigo, which is the company’s No. 1 line. CJ Schwan’s produces popular brands such as Red Baron, Tony’s and Freschetta pizza, Mrs. Smith’s and Edwards desserts, and bibigo and Pagoda Asian-style foods.

“It is going to be one of the most state-of-the-art manufacturing and food production facilities in the world, and we’re proud to have that here in Sioux Falls,” Mayor Paul TenHaken said.

“I’m ready to call us the egg roll capital of the world.”