SPC Group, which operates Paris Baguette, announced on the 3rd that it has confirmed its investment in a bakery factory in Texas, USA.
SPC Group has completed the acquisition of a bakery factory site of approximately 150,000 square meters (45,000 pyeong) in the Highpoint Business Park located in the City of Burleson, Johnson County, Texas. The company has also received approval for its investment plan and subsidies from the local government.
SPC Group plans to invest $160 million to establish the bakery factory at this site, aiming for completion in the second half of 2027 and beginning construction in earnest this summer. The local governments, including Johnson County and the City of Burleson, have agreed to provide $10 million in subsidies for Paris Baguette. Additionally, the state of Texas will offer tax incentives for equipment purchases needed for the factory construction. Therefore, Paris Baguette will receive a total support of up to $14 million.
The SPC Texas factory will serve as a production facility to supply bakery products to the United States and Canada, where Paris Baguette is expanding, as well as to regions in Central and South America, where it plans to enter in the future. Initially, it will be constructed with a total floor area of about 17,000 square meters (5,200 pyeong). Subsequently, in line with Paris Baguette's business expansion, the total area will be expanded to 28,000 square meters (8,400 pyeong) by 2030, enabling the supply of 500 million products annually. Approximately 450 jobs are expected to be created at this factory.
An official from SPC Group noted, "The construction of the Paris Baguette bakery factory in the United States stems from Chairman Huh Young-in's active global business enhancement policy. The acceleration of the project was influenced by the rapidly changing global market environment and U.S. industrial policies, including tariffs, following the inauguration of the second Trump administration."
Once this factory is built, it is expected to give a significant boost to Paris Baguette's operations in the Americas. Currently, Paris Baguette operates over 210 stores in North America, with a goal of opening 1,000 stores by 2030. This year, the company plans to expand its presence from 29 states to 35 states and open over 100 new stores.
SPC Group expects that the Texas factory will contribute to maximizing production and logistics efficiency as well as improving product quality. The factory will also include training facilities for local franchisees. Additionally, plans are being considered to utilize the factory as a base for SPC Samlip's response to the North American market and localization strategy, which is expected to generate synergies for SPC Group's overall global business. SPC Samlip is strengthening the export of K-foods such as hotteok, cream bread, and yakgwa in North America.
Huh Jin-soo, President of SPC Group, said, "The establishment of a local factory in the United States will be an important turning point for expanding entry into the North and Central American markets, the largest market in the world. Moving forward, we will accelerate our global business localization strategy and strive to widely promote the excellence of K-food in the global market."