Sanderson Farms to build new poultry complex
March 16, 2017
by Erica Shaffer
The company has proposed sites in Smith and Wood counties in Texas as tentative locations.
LAUREL, Miss. – Two Texas counties could be the home of a new poultry complex owned by Sanderson Farms Inc., the company said. Sites in Smith and Wood counties have been tentatively selected for construction of a new feed mill, hatchery, poultry processing plant and waste water treatment facility.
The facilities will feature state-of-the-art processing capabilities to process 1.25 million birds per week for retail chill pack customers, according to Sanderson Farms. The complex will employ approximately 1,700 workers, will require 80 contract poultry growers and will be equipped to process and sell approximately 375 million lbs. of dressed poultry meat annually at full capacity.
“We are grateful for the cooperation from the economic development and governmental officials in Tyler, Mineola and Lindale, Texas; Wood and Smith Counties; and the state of Texas,” said Joe F. Sanderson, chairman and CEO. “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 million birds per week represented by the new complex will provide new marketing opportunities for the company for retail grocery customers. We are pleased that our recent financial performance has put us in a position to continue to grow our company.”
Sanderson expects to invest $200 million in the new complex, while poultry contract growers will contribute an additional $135 million investment in poultry production facilities. Construction on the new complex is slated to begin during the summer, with initial operations to begin during the first fiscal quarter of 2019.
Construction of the complex is subject to completion of tax abatement and incentive agreements with public subdivisions and the state of Texas, in addition to obtaining final required permits from appropriate agencies.
In January, Sanderson Farms opened a new 180,000-sq.-ft. processing plant and wastewater treatment facility in St. Pauls, North Carolina. The $155 million facility is the company’s 11th fully integrated poultry processing operation in the United States. The company operates poultry plants throughout the southeastern US in Mississippi, Louisiana, Texas, North Carolina and Georgia.