LAUREL, Miss. — Sanderson Farms, Inc. announced today that it plans to
locate a potential new poultry complex near Goldsboro, North Carolina. The
construction of the new complex is subject to various contingencies, including
obtaining satisfactory state and local incentives, locating suitable property,
obtaining necessary permits and the approval of the Company’s lenders of an
amendment to its revolving credit agreement permitting, among other things, the
capital expenditures for the Goldsboro complex.
Sanderson Farms expects to invest approximately $94.0 million in the potential
new big bird deboning complex. The project, if completed, will consist of an
expansion of the feed mill for the Company’s Kinston, North Carolina, plant, a
hatchery, a processing plant with capacity to process 1.25 million chickens per
week and a waste water treatment facility. At full capacity, the plant is
expected to employ approximately 1,100 people, require approximately 150
contract growers, and be equipped to process and sell 8.9 million pounds of
dressed poultry per week. If all contingencies are met, the Company expects to
begin construction of the complex in the second quarter of fiscal 2011 and
expects to begin operations in the third quarter of fiscal 2012.
According to Joe F. Sanderson, Jr., chairman and chief executive officer of
Sanderson Farms, Inc., plans for this potential project have been approved by
the Company’s Board of Directors. “This planned expansion in North Carolina will
support our growth strategy and further enhance our ability to drive revenue and
earnings for our shareholders. Once fully operational, the production at this
new facility, together with the new production at our Kinston, North Carolina,
facility, will represent a 30 percent increase to our processing capacity, and
is expected to provide steady production growth for the Company through 2014. In
today’s market environment, we believe we have a significant opportunity to
leverage our efficient operations with the additional capacity of 1.25 million
birds per week and take advantage of new markets. We are pleased that our strong
balance sheet and financial performance have put us in the position to continue
to grow our Company.”
Sanderson Farms, Inc. is engaged in the production, processing, marketing and
distribution of fresh and frozen chicken and other prepared food items. Its
shares trade on the NASDAQ Global Select Market under the symbol SAFM.
This press release contains both historical and forward-looking statements. All
statements, other than statements of historical fact, are, or may be deemed to
be, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements are based on
management’s current views and assumptions, and are subject to risks and
uncertainties. Actual results and events may differ materially from those
expressed or implied in the statements. For a discussion of these risks and
uncertainties, please refer to the Company’s most recent Annual Report on Form
10-K and other subsequent filings with the Securities and Exchange Commission.
Forward-looking statements included herein speak only as of the date hereof and
the Company undertakes no obligation to revise or update such statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events or circumstances.
Source:
Sanderson Farms, Inc.
