Schwan’s buys land in Sioux Falls for new food production facility | The powerful 790 KFGO

BY: MAKENZIE HUBER

SIOUX FALLS, SD (South Dakota Searchlight) – Three years after its first announcement, Schwan’s Co. is taking the next step in its investment in South Dakota after closing on 142 acres of land northwest of Sioux Falls.

The company plans to build a 700,000 square foot Asian food production facility in Foundation Park, including a wastewater treatment facility at the manufacturing site. The wastewater treatment facility will allow the company to discharge water into the city “with the least possible impact on city operations,” according to a press release.

The company, based in Minnesota and a subsidiary of South Korea-based CJ Foods, initially announced its plans in 2021. The project would then have cost around $500 million and create 600 jobs in South Dakota’s largest city . Gov. Kristi Noem called it at the time “the largest project in the history of the Governor’s Office of Economic Development.” A similar description has since been applied to a potential $1 billion sustainable aviation fuel facility in Lake Preston.

Schwan’s latest announcement does not contain an official cost estimate for the facility, although it will still employ 600 people.

Noem welcomed the news Friday in a press release, saying, “South Dakota just keeps growing. Our “open for business” mindset is transforming our state into an economic powerhouse.

South Dakota’s unemployment rate in April 2024 was 2%, according to the Bureau of Labor Statistics. South Dakota was tied with North Dakota for the lowest unemployment rate in the country at the time.

The new manufacturing facility will produce Asian-style foods, primarily for Schwan’s bibigo brand, using automated production lines. The campus will also include a warehouse and distribution center, shipping and receiving docks, and offices.

The company also plans to open a regional office in downtown Sioux Falls “to support its continued expansion and operations at the new manufacturing facility,” according to a company press release. This office will initially employ an additional 50 people, with potential to grow to 100 employees.

Schwan’s outgoing CEO, Dimitrios P. Smyrnios, said state and local officials helped the company “make great progress” on the project, which will increase Schwan’s production capacity. The company’s Bibigo brand is sold nationwide, including in Costco stores. The facility will join CJ Foods’ Asian food facilities on the East and West Coasts.

“I want to personally thank Governor Kristi Noem and her team for their leadership and commitment to our plans,” Smyrnios said in the press release. “Without his unwavering support, this project would not be possible. It is clear to me that “the state of South Dakota is open for business.”

State officials did not immediately respond to messages from South Dakota Searchlight seeking information on any assistance offered to Schwan. The company directed questions on this topic to state officials.

Bob Mundt, president and CEO of the Sioux Falls Development Foundation, told Searchlight that the organization does not disclose incentives given to potential business partners unless the company does.