Sanderson Farms plans additional poultry complex
Sanderson Farms has announced that it plans to locate a potential new poultry complex near Goldsboro, North Carolina, USA.
The construction of the new complex is subject to various contingencies, including obtaining satisfactory state and local incentives, locating suitable property, obtaining necessary permits and the approval of the company’s lenders of an amendment to its revolving credit agreement permitting, among other things, the capital expenditures for the Goldsboro complex.
Sanderson Farms expects to invest approx. $94.0 mln in the potential new big bird deboning complex. The project, if completed, will consist of an expansion of the feed mill for the company’s Kinston, North Carolina, plant, a hatchery, a processing plant with capacity to process 1.25 mln chickens per week and a waste water treatment facility. At full capacity, the plant is expected to employ approx. 1,100 people, require approx. 150 contract growers, and be equipped to process and sell 8.9 mln pounds of dressed poultry per week. If all contingencies are met, the company expects to begin construction of the complex in the second quarter of fiscal 2011 and expects to begin operations in the third quarter of fiscal 2012.
According to Joe F. Sanderson, Jr., chairman and CEO of Sanderson Farms, plans for this potential project have been approved by the company’s Board of Directors. “This planned expansion in North Carolina will support our growth strategy and further enhance our ability to drive revenue and earnings for our shareholders. Once fully operational, the production at this new facility, together with the new production at our Kinston, North Carolina, facility, will represent a 30% increase to our processing capacity, and is expected to provide steady production growth for the company through 2014. In today’s market environment, we believe we have a significant opportunity to leverage our efficient operations with the additional capacity of 1.25 mln birds per week and take advantage of new markets. We are pleased that our strong balance sheet and financial performance have put us in the position to continue to grow our company.”
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