A Paris Baguette store located in Lexington Avenue, New York, US (SPC Group)
A Paris Baguette store located in Lexington Avenue, New York, US (SPC Group)

South Korean bakery giant SPC Group announced on Thursday its plan to invest some $160 million to build the group's largest overseas production plant in the United States.

The company has selected the city of Burleson in Johnson County, Texas, as the preferred location for the bakery facility and is in the final stages of negotiations with the local government on investment plans and related subsidies.

Those discussions over the 150,000-square-meter facility are expected to be finalized by the end of this month, the company said.

Situated in the southern central US, Texas offers strategic logistical advantages, providing efficient access to markets in the US, Canada, Mexico and Central America. The state is also recognized as business-friendly, offering benefits such as investment incentives and a favorable labor environment.

Johnson County and the City of Burleson are expected to provide around $10 million in subsidies to attract the investment, according to SPC Group.

The new US bakery facility will serve as a key production hub, supplying baked goods to Paris Baguette stores as they expand across North America, and targeting future markets in Central and South America.

Currently, SPC Group operates a 20,800-square-meter bakery facility in Tianjin, China, and is close to completing a 16,500-square-meter halal-certified factory in Johor Bahru, Malaysia.

The group's key brand, Paris Baguette, has grown to over 600 stores in 14 countries, including more than 200 locations in the US and Canada. With its growing success in North America, the franchise has steadily increased both its store count and product supply.

By 2030, Paris Baguette aims to expand its North American footprint to 1,000 stores.

“We are moving forward with the construction of a US factory to ensure a stable product supply and enhance quality as our North American business continues to grow,” an SPC Group official said. “By successfully completing the facility, we hope to showcase the excellence of K-bakery to a global audience.”

By Kim Hae-yeon (hykim@heraldcorp.com)