SIOUX FALLS, S.D. (KELO) — Smithfield Foods announced Friday it plans to close a Vernon, California, processing plant. 

In a news release, the company that operates a hog-processing plant in Sioux Falls said it’s closing the plant because of “the escalating cost of doing business in California.” 

Smithfield said it will decrease its sow herd in Utah and is looking for strategic options to exit its farms in Arizona and California. 

“Smithfield will service customers in California with its Farmer John brand and other brands and products from existing facilities in the Midwest,” a news release said. 

Smithfield said it will provide assistance to all impacted employees, including relocation options to other company facilities.