12th Jan, 2006 - Sanderson Farms Inc. on Thursday said it will build a $70 million manufacturing complex including a new hatchery, poultry processing plant and wastewater treatment facility near Waco, Texas.
The plant will employ about 1,300 people and have the capacity to process 1.2 million birds per week, or about 8.4 million pounds per week of poultry meat. Sanderson said it expects to contract with some 150 growers to supply the birds.
Construction is slated to begin this spring, with operation planned for May 2007.
The company also intends to expand its feed mill in Easterly, Texas, to satisfy the production needs of the new complex.
"We believe this expansion will enhance our ability to drive revenues and earnings," said Chairman and Chief Executive Joe F. Sanderson Jr., adding that the company is beginning the project nearly debt-free.
Last month, the company announced it would spend $24 million to expand its poultry processing capacity in Collins, Miss.
Sanderson shares fell 11 cents to $26.98 in afternoon trading on the Nasdaq.