Morrell's closure hurting surrounding communities as well - KTIV News 4 Sioux City IA: News, Weather and Sports

Morrell's closure hurting surrounding communities as well

SIOUX CENTER, Iowa (KTIV) -- Since the news broke in January that the John Morell plant in Sioux City was closing, the focus has been on the impact its closing would have on the workers and the city itself.

While its estimated there will be a $245 million annual economic loss to Sioux City, the surrounding rural communities and some of the associated businesses located there will also be affected.

For towns like Sioux Center, Iowa, that are heavily dependent on agriculture and specifically hog production, the aftershock will be most obvious for farmers, but also related businesses.

However, SiouxPreme Packing CEO Gary Malenke says the trickle down effect is hard to estimate just yet.

"It's very difficult to tell what the ripple effect will be, there clearly will be something," Malenke said. "There's going to be some people that were supplying some type of service or material towards that plant that may be have some impact."

Malenke says he's optimistic with the resiliency of the economy and that folks in Siouxland will adjust fairly quickly.

The Siouxland Chamber of Commerce estimates the effect on the regional economy and surrounding communities will be nearly $450 million.

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