Simmons Foods to invest $26 million in new pet food plant, create 78 jobs
by December 15, 2015 4:53 pm 1,330 views
Siloam Springs-based Simmons Foods plans to spend at least $26 million on a new pet food ingredient plant that will create an estimated 78 jobs in the Northwest Arkansas city.
The 89,125-square-foot facility will be built on an almost 16-acre site with completion set for November 2016, according to a company announcement on Tuesday (Dec. 15). The new operation under its Simmons Pet Food Inc. division will produce fresh and frozen meat ingredients for pet food manufacturers.
“The pet food industry requires ingredient integrity, traceability and safety. We’re really proud of the work our team has done in setting a new standard for how ingredients are produced,” Todd Simmons, CEO of Simmons Foods, said in the statement. “We’re excited to see this innovative facility here in Arkansas. … We’re very thankful for the support from our state and community leaders. They made it possible for us to keep this project local.”
Simmons says the new plant will create a $50 million economic impact, and will be a “model for the future of ingredient production” that includes “unprecedented sourcing traceability.”
The company, according to its website, supplies pet food ingredients and products to 35 of the top 40 north American food retailers. Simmons Pet Food produces around 3,500 products ranging from products to product packaging.
“With respect to our private-label business, Simmons strives to execute a ‘quick-to-follow’ strategy whereby once a leading brand establishes a popular product format or formulation, we quickly offer an analogous product to our customers,” according to the company.
Demand is growing in the pet food industry. According to the Pet Food Institute, annual sales in north American have risen from $12.2 billion in 2000 to more than $21.4 million in 2014. The number of dogs reported as pets in 2014 was 71.639 million, up almost 17% compared to 2001. However, the number of cats reported as pets in 2013 was 73.6 million, down 2.6% from 2001.
STATE SUPPORT
Arkansas officials are providing incentives for the project. Those include:
• Arkansas Advantage (Income Tax Credit), which is based on new jobs created;
• The “Tax Back” program that allows sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses; and
• A $1 million grant for wastewater pretreatment operations at the facility
“Arkansas is fortunate to have a company like Simmons Foods here in our state,” noted a statement from Gov. Asa Hutchinson (R). “Simmons has an emphasis on strong family values and an exemplary workforce that have driven the company to today’s significant expansion announcement. Their business model is an inspiration for entrepreneurs throughout the state.”
Simmons Foods, founded in 1949, has 5,800 employees with 30 facilities and 12 production plants. Of the employees, more than 1,200 are employed to support operations in the Siloam Springs area. The company has operations in Arkansas, Missouri, Oklahoma, Kansas, New Jersey and Ontario, Canada. The company says it has $1.4 billion in annual revenue.