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Poultry Processing & Slaughter / Broilers & Layers
on March 12, 2015

Sanderson to build plant in St. Pauls, North Carolina

Construction of Sanderson Farms facilities expected to begin in summer of 2015

Sanderson Farms has selected a site located in St. Pauls and Robeson County, North Carolina, to construct a new poultry processing plant and wastewater treatment facility. The company also announced it has sites under consideration for a new hatchery.

These facilities will comprise a state-of-the-art poultry complex with the capacity to process 1.25 million birds per week for the big bird deboning market, the company stated. At full capacity, the complex will employ approximately 1,100 people, will require 100 contract growers, and will be equipped to process and sell approximately 500 million pounds of dressed poultry meat annually at full production.

Sanderson Farms expects to invest approximately $139 million in the new North Carolina complex, which includes upgrades to its Kinston, North Carolina, feed mill, and anticipates that associated contract growers will invest an additional $168 million in poultry production facilities. The company expects to begin construction of the facilities this summer, with initial operations of the new complex to begin during the fourth fiscal quarter of 2016.

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 and approval by the company's board of directors. "We are grateful for the cooperation from the economic development and governmental officials in St. Pauls, Robeson County and the State of North Carolina," said Sanderson. "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 in the fresh food service market. We are pleased that our recent financial performance has put us in a position to continue to grow our company."

The St. Pauls location was chosen over another potential site in Fayetteville, North Carolina, in Cumberland County.

"We want to also thank the public officials and communities of Fayetteville and Cumberland County, North Carolina, for the vote of confidence in our company demonstrated by their recent approval of an incentive package for this project. However, we have decided, at this time, to pursue the opportunity in St. Pauls and Robeson County," said Sanderson.
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