Sioux Falls, South Dakota — Smithfield Foods Inc., with a rich history spanning 117 years, is set to transition from its longstanding facility to a new $1.3 billion plant planned for 200 acres in northwest Sioux Falls. This move aims to modernize operations and enhance production capabilities as the company contemplates the future.

CEO Shane Smith emphasized the need for significant investment, stating, “We reached a point where extensive renovations to our century-old facility or building anew became our only choices.” The decision to construct a new state-of-the-art plant is viewed as crucial for the company’s growth.

This new establishment will allow for the creation of the most technologically advanced meat processing facility in the country, boasting over 1.4 million square feet of production space and advanced automation systems. Smithfield processes around 20,000 hogs daily, primarily sourced from independent producers, underlining its position as a major player in the packaged meats market.

Concurrently, a philanthropic gift of $50 million from local benefactor Denny Sanford is facilitating a transformative redevelopment of the current site adjacent to downtown Sioux Falls. This financial support will enable the community to acquire 120 acres, paving the way for extensive redevelopment efforts, as affirmed by Mayor Paul TenHaken.

“This gift will significantly impact our downtown, enabling us to create a new district centered around Falls Park,” TenHaken remarked, recognizing the immense potential for community enhancement. The new area may be designated as The Sanford District, aiming to double the size of the downtown environment.

Located along the Big Sioux River, the existing plant, built in 1909 as John Morrell & Co., has been pivotal in the local economy. It was acquired by Smithfield in 1995, which itself was taken over by China-based WH Group in 2013. Currently, about 2,200 employees work at the Sioux Falls plant, contributing to a payroll of approximately $200 million.

Entering discussions about the future, Smith indicated that the new site at Foundation Park, situated near major highways and rail access, serves as an optimal location for the new facility. Constructing the plant is anticipated to commence in 2027, with operational status potentially beginning in late 2028.

South Dakota Governor Larry Rhoden expressed enthusiasm about the project, highlighting it as the largest business investment in state history. “Today is proof that our state welcomes new opportunities,” he stated, reflecting on the broader economic implications for Sioux Falls.

The extensive redevelopment, alongside Smithfield’s impending relocation, establishes a collaborative effort to reinvigorate the community. Both local officials and the community are optimistic about the future, viewing this initiative as a landmark development that signals a bright path forward.

“As we move towards this new chapter, we remain committed to fostering growth and sustainability for generations to come,” TenHaken remarked, underscoring the significance of partnership in revitalizing the city’s identity. The optimistic sentiment surrounding this project reinforces a collective belief in Sioux Falls as a thriving center for industry and innovation.