Sanderson Farms announces site for new Texas poultry complex

Complex to process 1.25 million birds per week.

Sanderson Farms Inc. announced last week that sites located in Smith and Wood counties, Texas, have been tentatively selected for construction of a new feed mill, hatchery, poultry processing plant and wastewater treatment facility, subject to certain contingencies.

The facilities will comprise a state-of-the-art poultry complex with the capacity to process 1.25 million birds per week for retail chill pack customers. At full capacity, the complex will employ approximately 1,700 people, will require 80 contract growers and will be equipped to process and sell approximately 375 million lb. of dressed poultry meat annually at full production.

Sanderson Farms expects to invest approximately $200 million in the new Texas complex and anticipates that associated contract growers will invest an additional $135 million in poultry production facilities. Construction of the facilities is expected to begin during the summer of 2017, with initial operations of the new complex to begin during the first quarter of fiscal 2019.

Commencement of construction of the new complex is subject to completion of tax abatement and incentive agreements with public subdivisions and the state of Texas and obtaining final required permits from the appropriate agencies.

According to Joe F. Sanderson Jr., chairman and chief executive officer of Sanderson Farms, the selection of these sites followed a thorough due diligence process.

“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,” Sanderson said. “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.”

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