Hormel preps its new look

Published 10:32 am Tuesday, May 17, 2011

Adam Harringa/adam.harringa@austindailyherald.com - Jim Mino, director of engineering at Hormel, explains details of the company's planned expansion, which began Monday.

Hormel Foods Corp. had a good 2010 fiscal year, and it’s beginning to show.

Hormel broke ground Monday on a corporate office expansion project that was announced in February, and announced plans for expansion at the Hormel plant in Fremont, Neb.

Hormel Chief Executive Officer Jeff Ettinger said in February the expansion in Austin was intentionally made after a record-setting year, as the company looks to expand its facilities.

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“I think it’s good timing,” Ettinger said at the time.

Hormel – ranked 325 on the 2010 Fortune 500 list released last week – had total sales of $7.2 billion in the 2010 fiscal year, a 10.5 percent increase from 2009.

The 28,000-square foot expansion, the first for Hormel in more than 20 years, includes new conference room space, an auditorium for large group meetings, an exercise room, a cafeteria and food service area, and additional parking. The majority of the expansion, 20,500 square feet, will take place on the first level where the main entrance sits, and the remainder will be a basement level housing building services, air conditioning and heating, ventilation and electrical gear.

“All the employees at this location are excited,” said Julie Craven, vice president of corporate communications. “We’re full. This building does not have a lot of extra cubicles or open conference rooms, so it’s going to give us some much-needed space, and it’s also going to give us some things including the cafeteria and exercise room that we don’t have now. So employees are very excited to see how it comes together.”

Residents who live west of the corporate office were also invited to the groundbreaking meeting. Joseph Rysavy was one of those residents and his son, also Joseph Rysavy, Rochester, said he doesn’t have any qualms about the expansion.

“I think the plans are fine,” the son said. “I don’t see any major issues that will impact my dad negatively. Traffic may be an issue, parking may be an issue, but it sounds like they’ve considered those.”

Barbara Adams, who also lives in the area, said the expansion is going to be nice, and she looks forward to watching the expansion unfold.

McGough Construction of the Saint Paul is the general contractor and Fox Electric Co. of Austin is the electrician.

Craven said the company will not add jobs because of the expansion, and would not comment on the cost.

Hormel officials hope to wrap up the project by January 2012.

Construction is also slated to begin this summer on Hormel’s Fremont facility. That project should take about a year to complete, Craven said, and will allow Hormel to increase production. Craven would not comment on whether or not that expansion will create new jobs. The facility employs about 1,400 workers.

– The Associated Press contributed to this report.