The new 90,000sq ft plant in Sampson County, North Carolina, is expected to create around 177 new jobs.
When construction is complete, due by June 2016, the plant will be capable of producing 50 million pounds of pork sausage each year, and will process between 700 to 1,000 sows a day.
"We formed Kansas City Sausage in 2013 as part of our strategy to expand into the $4bn breakfast and dinner sausage categories. This new facility is an essential part of that strategy and also underscores our commitment to broaden our product offerings through a focus on our customers, brands, products and geographic footprint," said Smithfield Foods’ president and CEO C Larry Pope.
"The new Kansas City Sausage operation will have a positive impact on the local economy from the moment we break ground," said Justin Hanlon, CEO of Kansas City Sausage. "Besides our investment in construction and the new workforce, we will contribute to increased demand for local hog production."