Imagine a century-old industrial giant packing up and moving—not just anywhere, but to a state-of-the-art, billion-dollar facility. That’s exactly what Smithfield Foods is doing, and it’s shaking up Sioux Falls in the most unexpected way. But here’s where it gets controversial: while the move promises economic growth and technological advancement, it also raises questions about the future of the historic site it’s leaving behind—and not everyone agrees on what that future should look like.
Smithfield Foods Inc., a powerhouse in the pork industry, is bidding farewell to its 117-year-old location in Sioux Falls. Instead, the company is pouring an estimated $1.3 billion into a new plant spanning 200 acres in the northwest part of the city. CEO Shane Smith explained the decision simply: “We were faced with a choice—renovate our aging facility or start fresh. The choice became clear: it’s time to invest in the future.” And invest they are, with plans to build a cutting-edge facility from the ground up.
But that’s not all. Thanks to a $50 million gift from philanthropist Denny Sanford, the 120-acre site adjacent to downtown will transition to community ownership. This move paves the way for a massive redevelopment project that could transform the heart of Sioux Falls. Mayor Paul TenHaken couldn’t hide his excitement: “Our community is gaining 120 acres right at the core of downtown, next to our iconic Falls Park. This is a game-changer.”
The original plant, built in 1909 as John Morrell & Co., has been a staple along the Big Sioux River for generations. Acquired by Smithfield in 1995 and later by China-based WH Group in 2013, it’s now the second-largest processing facility for Smithfield and the largest producer of packaged meats in the U.S. With a workforce of 2,200 in Sioux Falls and a $200 million payroll, the plant processes a staggering 20,000 hogs daily, primarily from independent producers.
The new facility, slated to be the most technologically advanced in the country, will feature cutting-edge automation and IT systems. At over 1.4 million square feet, it will be the largest in Smithfield’s network. The company plans to invest up to $1.3 billion over the next three years, pending regulatory approvals and final design sign-off from its board.
Located at Foundation Park, the new site is strategically positioned near major highways and rail lines, making it an ideal hub for operations. Shane Smith called it a “win-win solution” that not only benefits Smithfield but also opens up “generational redevelopment” opportunities for Sioux Falls. “This is a once-in-a-lifetime opportunity,” he added.
Construction is set to begin in 2027, with operations potentially starting as early as late 2028. Governor Larry Rhoden was effusive in his praise: “This is proof that South Dakota is open for opportunity. It’s the largest business investment in our state’s history—something I wouldn’t have believed possible a year ago.”
The site Smithfield is leaving behind, roughly equivalent to a large swath of downtown, presents a unique chance to nearly double the size of the city’s core. In honor of Sanford’s donation, the area is proposed to be named The Sanford District. Mayor TenHaken described it as “a whole other downtown—a once-in-a-generation opportunity.”
Sanford’s donation was the linchpin that made the deal possible. The philanthropist was present at the announcement, and his gift will be channeled through the Sioux Falls Area Community Foundation to the Sioux Falls Development Foundation for purchasing the property. TenHaken joked, “I don’t know if Denny Sanford will be remembered as the Sanford Health guy or the guy who bought a pork plant, but both are equally transformative for our community.”
And this is the part most people miss: While the new plant and redevelopment plans are exciting, they also spark debate. What should the Sanford District become? How will the community balance commercial interests with public spaces? And what does this mean for the future of industrial giants in small cities? These questions invite differing opinions, and the conversation is just beginning.
What do you think? Is this move a bold step forward, or does it raise concerns about the balance between progress and preservation? Share your thoughts in the comments—let’s keep the discussion going. This story is far from over, and we’ll be updating it as more details emerge. Stay tuned!
