Sanderson Farms previously announced plans on April 24, 2008, to invest approx. US$126.5 mln for construction of a new feed mill, poultry processing plant and hatchery on separate sites in Kinston and Lenoir County, North Carolina. On June 26, 2008, the company announced its decision to postpone the project due to market conditions and escalating grain prices. The budget for the project is now expected to be approx. US$121.4 mln.
The Kinston facilities will comprise a state-of-the-art poultry complex with the capacity to process 1.25 mln birds per week for the retail chill pack market. At full capacity, the complex will employ approx. 1,500 people, will require 130 contract growers, and will be equipped to process and sell 6.7 mln pounds per week of dressed poultry meat at full production. The company expects to begin construction of the facilities later this summer, with initial operation of the new complex scheduled to begin during the first quarter of fiscal 2011.
According to Joe F. Sanderson, Jr., chairman and CEO of Sanderson Farms, "We are pleased that better overall market conditions, our financial performance and a strong balance sheet have put us in the position to continue to grow our company. We are also proud to honour our commitment to the economic development and governmental officials in, and citizens of, the City of Kinston, Lenoir County and the State of North Carolina. We believe this expansion will enhance our ability to drive revenues and earnings, and allow us to continue our record of building long-term value for our shareholders. The additional capacity of 1.25 mln birds per week represented by the new complex will provide new marketing opportunities for the company in the fresh retail market. We look forward to working with the local communities in North Carolina that have graciously supported Sanderson Farms and this project."
Source: Sanderson Farms
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