Chief executive Keith Cooper would not disclose the price paid for the Wallace Corporation's plant at Waitoa. SFF has employed the staff at the plant and will adopt a "business as usual" approach.
Wallace Corporation will retain its rendering, tanning, farming and casualty stock collection business at Waitoa.
The purchase made "total sense" for SFF and fitted into much of the discussion within the industry about removing duplication and unnecessary costs.
It "absolutely ticks" all the things people had been "crying out for", Mr Cooper said.
"It has long been recognised that industry rationalisation is required to ensure the sustainability of the red meat processing sector over the long term.
"Our plan of action demonstrates the ability of commercial entities to make commercial investment decisions with confidence in the sector."
SFF's intention to rebuild the Te Aroha plant would be welcome news for the area, he said. The plant has been closed since last December when it was seriously damaged by fire.
The fire destroyed the slaughter area, boning room and chillers.
The rebuild was subject to final board and other approvals, including union agreement, and Mr Cooper hoped it would be signed-off within a month. Construction was expected to take about nine months.
Getting final costings were a "work in progress" and while the company had a "fair idea" of the cost to build a standard plant, it would not be a standard plant.
The company was trying to take a "quantum leap" in terms of the type of facility it was building.
Designed in consultation with international experts in process layout and ergonomics and incorporating sophisticated traceability and yield collection systems, the plant would reflect the company's focus on economics and best practice processing, he said.
It has been developed with eco-efficiency and sustainability in mind and would set an industry benchmark in line with global customer requirements.
SFF was reviewing the environmental footprint of its operations "at every opportunity", with a focus on improving environmental efficiency while reducing costs through better use of resources and reduction of waste, Mr Cooper said.
The plant will use significantly less electricity and water per head and discharge less effluent per head processed.
Almost half the employees from the Te Aroha plant had been working night shift at SFF's Pacific plant in Hastings and they would be "first off the rank" to work at the rebuilt plant.
