Company Announces Nearly Half a Billion in Projected Growth

(South Sioux City, Nebraska) On Tuesday afternoon, officials from Beef Products Incorporated (BPI) were joined by representatives from the State of Nebraska, the City of South Sioux City, and local economic developers to unveil plans for an unprecedented economic development project. BPI officials announced plans to embark on a staggering $400 million expansion projected to create 300 new jobs by the year 2010 at their flagship facility in South Sioux City, Nebraska.

Gov. Dave Heineman attended the announcement saying, “Creating jobs should be one of our top priorities in this state. Continuing Nebraska's strong economic growth is helping to create jobs for the workers of today and for future generations. I want to congratulate everyone at BPI for their commitment to South Sioux City and also for their continued success in job creation. This company has demonstrated an outstanding commitment to innovation and industry leadership, and we certainly appreciate this new investment in the Siouxland region and our state overall.”

Since its founding in 1981, BPI has emerged as a global leader in the manufacture of ground beef while becoming the leading producer of boneless lean beef in the world. Company President and CEO, Eldon Roth, attributed the company's remarkable growth to hard work, dedicated personnel, and a share of good fortune. “BPI's continued growth is possible because our employees understand the importance of an old-fashioned work ethic,” he said. “Their commitment to this company and this community inspire us each and every day.”

Officials familiar with the company were quick to add that Roth and his wife Regina, the company’s Secretary / Treasurer, demonstrated typical reluctance to take credit for the company’s remarkable success. Siouxland Chamber of Commerce President Debi Durham stated, “Siouxland is indeed fortunate to have Eldon and Regina, as well as their company, in our community. This corporation is an industry leader because their management team leads by example. Not only has their business contributed immeasurably to our regional economy, but they have consistently proven extraordinarily generous with their time and resources to the benefit of the entire tri-state region.”

While recent expansion and construction announcements at BPI are nearing completion, Tuesday’s press conference confirmed an additional, independent four-phase 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 the pursuit of new markets.

BPI Corporate Administrator Richard Jochum explained, “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.”

Jochum reports that BPI’s four-phase expansion will begin with 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 the spring of 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. Expected to take the production of lean ground beef to a “whole new level,” company executives are still determining whether to market this new line of ground beef products independently or to engage an existing food company in a co-packing alliance.

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. Operations in phase four will include the introduction of a line of high-quality, enhanced steaks and cooked meats. With a capital investment estimated between $150 and $200 million, phase four anticipates the creation of an additional 200 employment opportunities.

Addressing the momentous capital investment projections and job creation estimates, South Sioux City Mayor Bob Giese remarked, “Today’s announcement is one of the greatest announcements in South Sioux City history. These BPI expansions will help secure this community’s economic growth for years to come. On behalf of South Sioux City and the entire Siouxland region, I want to thank the Roth’s and BPI for their continued confidence in our community.”

Those in attendance were able to taste and evaluate some of the new products for themselves as BPI employees hosted a barbeque-like backdrop to the mid-December press conference. Grilling hundreds of the hamburger patties for their guests, the initial reviews have been universally strong. Chris McGowan of The Siouxland Initiative who has had several opportunities to taste-test the burgers exclaimed, “These are honestly the most delicious hamburgers I have ever tasted. It’s hard to believe that they are actually healthier and have significantly less fat content than traditional burgers.”

In addition to their significant and ever-growing presence in the United States, BPI’s products can be found in Canada and Mexico, with expansion plans for Central America, Europe and Pacific Rim countries.

FOR INFORMATION, CONTACT:

Chris McGowan, The Siouxland Initiative (712) 255-7903

Individuals who are hearing and/or speech impaired and have a TDD, may contact the department through the Statewide Relay System by calling one of the following numbers:
711, (800) 833- 7352 (TDD), or (800) 833-0920 (voice).
The relay operator should be asked to call DED at (800) 426-6505, or (402) 471-3111.