distribution center

Papillion Foods LLC, an offshoot of Hormel Foods, has purchased a former Shopko distribution center at 10808 S. 132nd St. This photo, from 2011, shows the center before it was taken over by Spectrum America, when Shopko outsourced its distribution.

OMAHA — Hormel Foods is expanding its manufacturing operations into the Omaha metro area, a move expected to create a couple hundred jobs.

Papillion Foods LLC, an offshoot of Hormel, recently purchased a former Shopko distribution center in Sarpy County that closed last year shortly after Shopko declared bankruptcy.

The company initially expects to employ about 200 people, the “majority” of whom will be recruited locally, a Hormel spokesperson said in response to questions by The World-Herald.

“We are excited to expand our manufacturing footprint with this project in the greater Omaha/Council Bluffs area and are targeting a November 2020 opening for this first phase,” the company said in a statement.

The distribution center, at 10808 S. 132nd St., will undergo construction valued at $60 million, documents filed with the City of Papillion show. The company said it plans to convert the center into “a state-of-the-art manufacturing plant for our ... world-class food brands,” the statement said.

Hormel said it paid about $25 million for the building and the land beneath it.

Shopko had outsourced distribution for its stores in 2016 before filing for bankruptcy in 2019. At the time, it closed more than 100 of its 363 stores, including 20 Shopko stores in Nebraska and Iowa.

When the distribution center closed soon after, about 300 people lost their jobs.

The Sarpy County facility will be Hormel’s first manufacturing facility in Nebraska. The company also uses an independent supplier in Fremont.

Hormel Foods is a Fortune 500 food-processing company known for brands such as Skippy peanut butter, Jennie-O turkeys and Spam.

reece.ristau@owh.com, 402-444-1127, @reecereports

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