Bold move, big implications: Smithfield Foods plans to replace its 117-year-old Sioux Falls site with a $1.3 billion, 200-acre state-of-the-art plant, signaling a major shift for the company and the city.
We reached a point where significant renovations to our 100-year-old Sioux Falls facility were no longer practical, so we chose to invest in a new, modern facility from the ground up, said CEO Shane Smith.
Concurrent with the plant announcement, philanthropist Denny Sanford pledged a $50 million gift to enable the adjacent 120-acre parcel to transition into community ownership, paving the way for a historically ambitious redevelopment.
Mayor Paul TenHaken framed the move as a transformative moment for downtown: our community will gain 120 acres at the heart of Falls Park, becoming a catalyst for a far-reaching redevelopment effort.
The current site, alongside the Big Sioux River near Falls Park at 1400 N. Weber Ave., originated as John Morrell & Co. in 1909. Smithfield acquired it in 1995, and the company was later bought by WH Group of China in 2013. Last year, a portion of Smithfield became publicly traded on Nasdaq.
With roughly 2,200 employees in Sioux Falls, the plant supports about a $200 million payroll. It is Smithfield’s second-largest processing facility and the country’s largest producer of packaged meats, processing around 20,000 hogs daily from independent producers.
The planned plant aims to be the most technologically advanced in the nation, featuring cutting-edge automation and IT systems. It would become the largest facility in Smithfield’s network, delivering more than 1.4 million square feet of production space.
Initial projections peg the investment up to $1.3 billion over three years, though final costs depend on securing permits, regulatory approvals, and approval of the facility design by Smithfield’s board.
Foundation Park land, near the CJ Schwan’s Asian food production site under construction, is already zoned for heavy industry. The Sioux Falls Development Foundation owns the land.
Foundation Park’s location—north of the existing plant and with robust highway and rail access—offers a strong logistical advantage for Smithfield’s operations, according to the company.
Smithfield describes the project as a win-win that enables generational redevelopment for the city and calls it a once-in-a-lifetime opportunity.
Construction is expected to begin at Foundation Park in 2027, with potential production starting as soon as late 2028.
Governor Larry Rhoden expressed optimism, calling South Dakota open to opportunity and noting this would be the state’s largest-ever business investment. He admitted he wouldn’t have predicted both Smithfield’s relocation and the penitentiary move progressing a year ago.
The area vacated by Smithfield would stretch roughly from 13th Street to 6th Street and from Minnesota Avenue to the viaducts around 10th–11th streets, illustrating the project’s scale.
City leaders hailed the agreement as a historic milestone, emphasizing that the partnership avoided losing the plant and ensuring a future-focused development for downtown.
The adjacent Falls Park frontage presents a rare chance to nearly double downtown’s footprint. In recognition of Sanford’s donation, the redevelopment area could be named The Sanford District, signaling a new era for the city center.
TenHaken emphasized that Sanford’s gift was the linchpin that made the deal possible, while the philanthropist noted the dual significance of his contributions—Sanford Health’s profile and a major pork-processing facility’s transformation.
The donation will flow through the Sioux Falls Area Community Foundation to the Sioux Falls Development Foundation, which will use it to acquire the property.
As with all large-scale projects, details continue to evolve. Stay tuned for updates as plans progress and officials finalize designs and approvals.
