BPI Announces $400 Million Expansion

econdev@nppd.com   5/1/2007

BPI, the world's leading manufacturer of boneless lean beef, announced a $400 million, four-phase expansion project in South Sioux City, Nebraska...

BPI Announces $400 Million Expansion

BPI Announces $400 Million Expansion BPI, the world’s leading manufacturer of boneless lean beef, announced in December a $400 million, four-phase expansion project at their facility in South Sioux City, Nebraska, which will create 300 new jobs by 2010. The expansion focused on the implementation of internally developed processes and technologies which have already been patented. These advances will lead to BPI’s investment in the aggressive development of new products and in the pursuit of new markets.

"Today’s announcement is one of the greatest announcements in South Sioux City history," said South Sioux City Mayor Bob Giese. "These BPI expansions will help secure this community’s economic growth for years to come."

"In an effort to meet increasing consumer demand for safer and healthier products, BPI has been actively engaged in the research and development of processes and products that reduce or eliminate food-borne pathogens and decrease fat content, while actually enhancing flavor," explained BPI Corporate Administrator Richard Jochum.

The first phase of the expansion will be a $20 million cooked meats/pizza topping initiative intended to open new markets to a series of the company’s emerging product lines. The second phase is expected to represent a $15–$20 million investment in a state-of-the-art utilities facility. With centralized utility operations and consolidated monitoring equipment, the corporation expects to realize significant energy efficiencies. Company executives anticipate the two initial phases will break ground in spring 2007.

Phases three and four remain under development, but include a new production facility for ground beef, as well as a product enhancement facility. Phase three represents a capital investment projected at approximately $175 million and will create nearly 100 new jobs. Phase four calls for the construction of a "proprietary new injection enhancements facility" focused on strengthening the quality of BPI’s product line with improved safety and health technologies, as well as improving flavor. With a capital investment estimated between $150–$200 million, phase four anticipates the creation of an additional 200 employment opportunities.

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