Two Oregon food processing firms have announced a plan to open a big new cold storage warehouse in Salem.

The $25 million cold storage facility will be built on land owned by NORPAC Foods. But the other firm, Henningsen Cold Storage, will own and operate the 260-square-foot warehouse.

The two businesses have cooperated with each other for years.

NORPAC president, George Smith, says it's the right time to expand.

"It's a statement that we believe the food industry will remain viable and continue to grow ... It's a positive thing and an efficiency gain for us also."

Henningsen plans to employ 35-to-40 workers in the new plant, which is expected to open next spring.

Smith says NORPAC doesn't expect to add or lose any jobs.

It's consolidating headquarters staff from Stayton and Lake Oswego at the new plant.

NORPAC had been based in Stayton since 1923. But the company says its processing plant there will continue to operate at full capacity.

This story originally appeared on Oregon Public Broadcasting.

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