Smithfield Foods $1.3B Plant & Downtown Sioux Falls Redevelopment Plan

February 16, 2026 – Smithfield Foods Inc. Is undertaking a major restructuring of its Sioux Falls operations, announcing plans for a 2027 construction start on a new $1.3 billion facility in northwest Sioux Falls, while simultaneously transitioning its 117-year-old downtown plant to community ownership. The move represents the largest business investment in South Dakota’s history, according to Governor Larry Rhoden.

The decision to relocate stems from the limitations of the existing plant, originally built as John Morrell & Co. In 1909. “We reached a point where we would have to either make significant renovations to our 100-year-old Sioux Falls facility or build a new plant,” explained Shane Smith, President and CEO of Smithfield Foods. “it became clear that it was time to make a significant investment in the future.”

The new facility, planned for 200 acres in Foundation Park at the intersection of I-29 and I-90, will span more than 1.1 million square feet of production space. Smith described it as “the most modern of its kind in the U.S., featuring advanced automation technology and IT systems,” and the largest combined packaged meats and fresh pork processing facility within Smithfield’s network. The company currently processes approximately 20,000 hogs daily at the Sioux Falls location, sourced largely from independent producers.

Crucially, the relocation is coupled with a plan to redevelop the existing 120-acre downtown site. A $50 million gift from philanthropist Denny Sanford to the Sioux Falls Area Community Foundation will facilitate the transfer of the land to the Sioux Falls Development Foundation, paving the way for a large-scale redevelopment project dubbed “The Sanford District.” Mayor Paul TenHaken characterized the opportunity as “a once-in-a-lifetime” chance to nearly double the size of downtown Sioux Falls.

Smithfield’s decision comes after being acquired by China-based WH Group in 2013, the world’s largest pork company. Last year, 12 percent of Smithfield became publicly traded on the Nasdaq. The Sioux Falls plant is Smithfield’s second-largest processing facility and the largest producer of packaged meats in the United States, employing around 2,200 people with a total payroll of approximately $200 million. The company intends to maintain employment levels at the new facility.

The state of South Dakota is contributing $12 million to the project, with $6 million allocated to land acquisition in Foundation Park and another $6 million from the Future Fund earmarked for infrastructure development. These funds are intended to prepare the site for construction, which is expected to begin in the first half of 2027, with potential operations commencing by late 2028.

The Foundation Park location offers logistical advantages, according to Smith, being “well situated north of the facility at two major highways and provides rail access.” The area is already zoned for heavy industrial use and is adjacent to a CJ Schwan’s Asian food production facility currently under construction.

The implications of this move extend beyond Smithfield and the city of Sioux Falls. The redevelopment of the downtown site represents a significant opportunity for urban renewal and economic growth. The transfer of the land to community ownership, facilitated by Sanford’s donation, positions the city to shape the future of a strategically important area. The scale of the investment and the modernization of Smithfield’s processing capabilities also signal a continued commitment to the U.S. Pork industry, despite ongoing global market dynamics.

Governor Rhoden emphasized the significance of the announcement, stating, “Today is proof positive that South Dakota is open for opportunity.” Mayor TenHaken added, “We could have easily lost this plant… but we brought the deal together and this partnership continued on, and it’s going to continue on for another 100 years.”