Smithfield Foods has announced a $1.3 billion investment to build a new packaged‑meat and fresh‑pork processing plant in Sioux Falls, South Dakota. The facility will sit in Foundation Park, replacing the company’s century‑old downtown plant, and is slated to break ground in the first half of 2027 with production beginning at the end of 2028.
The project reflects Smithfield’s strategic pivot toward higher‑margin packaged meats, which accounted for nearly 59 % of the company’s 2024 sales. By concentrating advanced automation and streamlined process flow in a single, state‑of‑the‑art plant, the company aims to reduce exposure to commodity‑price volatility and strengthen its value‑chain integration.
Smithfield’s current Sioux Falls workforce of 3,200 employees, which generates roughly $200 million in annual wages, will be preserved, and the new plant is expected to support over 3,000 jobs directly and create thousands of indirect jobs in the region. The facility will also serve local hog farmers, corn and soybean producers, and other agricultural stakeholders, reinforcing the company’s commitment to the South Dakota supply chain.
Designed to be the most modern plant of its kind in the United States, the new facility will feature highly efficient process flow, advanced automation, and a streamlined layout that is projected to deliver significant efficiency gains for both fresh pork and high‑value packaged meats. The advanced technology is expected to improve throughput, reduce waste, and lower operating costs.
While Smithfield has not disclosed the specific financing structure for the $1.3 billion investment, the company has indicated that the project will be funded through a combination of internal cash flow and external financing, consistent with its long‑term capital allocation strategy. The investment is part of a broader effort to modernize the company’s production footprint and enhance profitability in a competitive industry.
Foundation Park, located at the intersection of Interstates 29 and 90, has attracted other major tenants such as Amazon and CJ Foods/Schwans, positioning the new plant within a growing industrial corridor. Smithfield’s previous $45 million renovation in 2018 and its long history in Sioux Falls underscore the company’s ongoing commitment to the region.
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