February 16, 2026
Smithfield Foods plans to leave its 117-year-old home and build an estimated $1.3 billion plant on 200 acres northwest of Sioux Falls.
“We have reached the point where we have to choose between significantly renovating our 100-year-old Sioux Falls facility or building a new facility,” CEO Shane Smith said.
“Ultimately, it became clear that the time was right to make a significant investment in our future, so today we are excited to announce that Smithfield plans to make a significant investment to build a new, state-of-the-art… facility from the ground up.”
At the same time, a $50 million gift from philanthropist Denny Sanford will move 120 acres adjacent to downtown into community ownership, paving the way for redevelopment on an unprecedented scale.
“As a result, our community will receive 120 acres of land in the heart of downtown, at the head of our namesake park, Falls Park,” said Mayor Paul TenHaken.
The existing factory has been located along the Big Sioux River at 1400 North Webber Avenue, just north of Falls Park, since it was built in 1909 as John Morrell & Co. The plant was acquired by Virginia-based Smithfield in 1995. Smithfield was acquired in 2013 by China-based WH Group, the world’s largest pork company. Last year, 12% of the company’s shares were listed on the Nasdaq.
Smithfield employs approximately 2,200 people in Sioux Falls, representing a payroll of $200 million. The plant is Smithfield’s second largest processing facility and the largest producer of processed meat in the United States. We process approximately 20,000 pigs daily, most of which come from independent producers.
The new factory will be the most technologically advanced in the country, with advanced automation technology and IT systems, and the largest in Smithfield’s network with more than 1.4 million square feet of production space.
Smithfield’s preliminary estimates are that the proposed investment would be up to $1.3 billion over the next three years. This investment is subject to securing the necessary permits and other regulatory approvals and approval of the final facility design by Smithfield’s Board of Directors.
The Foundation Park land, not far from CJ Schwan’s under-construction Asian Foods production facility, is already zoned for heavy industrial use. It is owned by the Sioux Falls Development Foundation.
The park is “an ideal location for Smithfield businesses,” Smith said. “We are well-located on the north side of the facility, facing two major highways and also have rail access.”
He said it was a “win-win solution” that created the potential for “generational redevelopment” in the city.
“This is a once-in-a-lifetime opportunity.”
Plans call for Foundation Park to begin construction in 2027 and could begin operations as early as late 2028.
Governor Larry Rhoden said he was “excited beyond words.” “Today is proof that there is opportunity in South Dakota.”
The project will be the largest business investment in state history, he said.
A year ago, he said, he didn’t think both Smithfield and the South Dakota State Penitentiary would move forward with their relocation plans.
“I would have been surprised,” Roden said.
The area Mr. Smithfield leaves covers approximately the distance from 13th and Phillips Streets to 6th Avenue and from Minnesota Avenue to the 10th and 11th Street overpasses.
“Today is a great day,” TenHaken said.
“We could have easily lost this plant. I don’t want to take for granted that it was assumed that Smithfield would be here, but it wasn’t…But we put the deal together and this partnership continues and it will continue for another 100 years.”
The long-standing site adjacent to Falls Park presents a major opportunity to nearly double the size of downtown. In honor of Sanford’s gift, it is proposed that the district be called the Sanford District.
“It’s a completely different downtown,” Tenhaken said. “This is truly a once-in-a-generation opportunity.”
Tenhaken added that Sanford’s donation was key to making this deal a reality.
The philanthropist attended Monday’s announcement. The donation will go to the Sioux Falls Regional Community Foundation and will be made available to the Sioux Falls Development Foundation to purchase the property, TenHaken said.
“I joked with him, “I don’t know whether you’re known as the Sanford Health guy or the guy who bought the hog factory, but both have an equally big impact in this community, because they’re both transformative.”
This story will be updated. Please check back for additional information.