Tyson Foods’ plans for an expansion at its case-ready plant in Sherman Texas took a step forward on January 7 when the Sherman City Council unanimously approved a $1.5 million tax abatement package.

Tyson Foods spokesman Derek Burleson told WATT Global Media that the company is exploring a potential upgrade of its material handling facility at the plant, which packages beef, pork and ground beef for retail customers. He said the planned improvements are part of Tyson Foods’ strategic plan to maintain efficiency and better support the plant’s production capabilities.

According to a report from the Herald Democrat, the planned project represents a $30 million investment for an 80,000 square-foot expansion of the facility.

The board of the Sherman Economic Development Corp. had earlier authorized a $1.5 million incentive for the expansion, and the city council created an industrial reinvestment zone for Tyson Foods in December, which was required for the authorization of the abatement.

“We appreciate the Sherman Economic Development Corp.’s collaboration on the proposed expansion,” Burleson said.

The Sherman plant’s last expansion was in 2013. At the time, Tyson Foods’ then-CEO Donnie Smith said the Sherman facility was one of four of the company’s plants to undergo expansions as part of a $40 million investment from the company. The other facilities expanding at that time were in Goodlettsville, Tennessee; Glen Allen, Virginia; and Jacksonville, Florida. 

Tyson Foods, headquartered in Springdale, Arkansas, is a leading processor of chicken, turkey, beef and pork products. According to the WATTAgNet Top Poultry Companies Database, Tyson is the largest broiler company in the United States and the second largest broiler company in the world. It is also the sixth largest turkey company.

Tyson Foods in 2018 completed the acquisition of Tecumseh Poultry and Keystone Foods. Keystone Foods was previously owned by Brazil-based Marfrig Global Foods.