Smithfield Foods Plans $1.3B Sioux Falls Plant – Chinese Ownership Concerns Rise
- Announced Monday its intention to construct a new, state-of-the-art packaged meats and fresh pork processing facility in Sioux Falls, South Dakota.
- While presenting itself as “an American food company and an industry leader,” Smithfield Foods is, in fact, owned by WH Group, a Hong Kong-based Chinese firm.
- The proposed Monday announcement detailed a preliminary investment of up to $1.3 billion over the next three years, contingent upon securing necessary permits and final board approval.
Smithfield Foods Inc. Announced its intention to construct a new, state-of-the-art packaged meats and fresh pork processing facility in Sioux Falls, South Dakota. The move, pending regulatory and design approvals, signals a significant shift for the 115-year-old company and a substantial investment in the state’s agricultural infrastructure.
While presenting itself as “an American food company and an industry leader,” Smithfield Foods is, in fact, owned by WH Group, a Hong Kong-based Chinese firm. The acquisition of Smithfield by Shuanghui International (later rebranded as WH Group) marked the largest Chinese acquisition of an American company to date, a detail that has drawn increased scrutiny in recent years regarding foreign ownership of critical American industries.
The proposed announcement detailed a preliminary investment of up to $1.3 billion over the next three years, contingent upon securing necessary permits and final board approval. The new facility will be located in Foundation Park, a 1,000-plus-acre industrial park in northwest Sioux Falls, and is intended to replace Smithfield’s existing plant, which has been a fixture in the region for over a century. Currently, Smithfield employs 3,200 people in Sioux Falls, providing $200 million in annual wages, and supports thousands of additional jobs in related agricultural sectors.
The decision to relocate has been met with enthusiasm from South Dakota’s political leadership. Governor Larry Rhoden, a Republican, framed the investment as a matter of national security, stating, “Food security equals national security, so food production and processing will continue to play a vital role in South Dakota’s economy.” He highlighted the potential for expanded livestock production within the state and the opportunity to revitalize the downtown Sioux Falls riverfront area once the existing plant is vacated. Mayor Paul TenHaken echoed this sentiment, calling the announcement a “historic moment” for the city and reaffirming Smithfield’s long-term commitment to the region.
Bob Mundt, president and CEO of the Sioux Falls Development Foundation, emphasized the “transformational impact” the new facility will have on the community and the agricultural economy. He pointed to the creation of skilled jobs, renewed opportunities for regional producers, and the potential for significant redevelopment in downtown Sioux Falls as key benefits.
Foundation Park, strategically located at the intersection of Interstates 29 and 90, has become a hub for industrial development in the state. If approved, site work is anticipated to begin in the spring of , with groundbreaking expected in the first half of and production slated to commence by the end of .
The move comes amid growing debate surrounding Chinese ownership of American farmland and food processing facilities. The U.S. Department of Agriculture has been working to gain a clearer understanding of the extent of foreign ownership in the agricultural sector, a concern fueled by geopolitical tensions and anxieties about food security. However, South Dakota officials have largely welcomed the Smithfield investment, focusing on the economic benefits it is expected to bring to the state.
Smithfield Foods, founded in and now a $15 billion food company, is the world’s largest pork producer. The company’s portfolio includes well-known brands such as Eckrich, Farmer John, Kretschmar, Curly’s, and Nathan’s Famous, the latter of which Smithfield recently agreed to acquire for $450 million. The Sioux Falls plant, originally established as John Morrell and Co. In and later purchased by Smithfield in , is one of over 60 processing facilities operated by the company worldwide.
The relocation represents a significant strategic decision for Smithfield, signaling a commitment to modernization and expansion within the American heartland. The project’s success hinges on navigating the complex regulatory landscape and securing the necessary approvals, but if realized, it promises to reshape the economic landscape of Sioux Falls and solidify South Dakota’s position as a key player in the nation’s agricultural industry.