Smithfield Packing Company will shift hog processing operations from its Smithfield South facility (formerly Smithfield Packing) to its Smithfield North (formerly Gwaltney) and Tar Heel,
Smithfield Packing estimates the one-time cost of discontinuing hog processing operations will be $8-10 million. Last year the Smithfield East Coast complex (Smithfield Packing and Gwaltney facilities in
"By consolidating hog processing from three to two facilities, we will significantly improve our operating efficiency and utilization of assets," says Jere T. Null, senior vice president of Smithfield Packing. "We have plans to produce value-added pork products in the vacated space, enabling us to meet our customers' continuing needs."
The company plans to spend more than $15 million to install pre-cooked microwave bacon lines. It also will invest $10 million to modernize hog processing operations at the Smithfield North facility and another $5 million in a new office building to meet the company’s current and future needs.