Source:  Tom Johnston, MEATINGPLACE.COM, 7/24/09

Sanderson Farms Inc. said late Thursday the company will proceed with the construction and start-up of its Kinston, N.C., poultry complex.

Sanderson earlier had announced plans to invest some $126.5 million for construction of a new feed mill, poultry processing plant and hatchery on separate sites in Kinston and Lenoir County, N.C. In June the company decided to postpone the project, citing market conditions and rising grain prices. The project's budget now is expected to be nearly $121.4 million, the company said in a news release.

The Kinston site will have a capacity to process 1.25 million birds per week for the retail chill-pack market. At full capacity, the complex will employ about 1,500 people, require 130 contract growers and process and sell 6.7 million pounds per week of dressed poultry meat.

Sanderson said it expects to begin construction later this summer, with initial operation scheduled to begin during the first quarter of fiscal 2011.

"We are pleased that better overall market conditions, our financial performance and a strong balance sheet have put us in the position to continue to grow our Company," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms. "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 retail market."

For more stories, go to www.meatingplace.com.