LAUREL, Miss., Apr 24, 2008 (BUSINESS WIRE) -- Sanderson Farms, Inc. (NASDAQ: SAFM) announced today that sites in
Kinston, North Carolina, have been selected for construction of a new
feed mill, poultry processing plant and 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 retail chill pack market.
At full capacity, the complex will employ approximately 1,500 people,
will require 130 contract growers, and will be equipped to process and
sell 6.7 million pounds per week of dressed poultry meat at full
Sanderson Farms expects to invest approximately $126.5 million in
the new North Carolina complex, and anticipates that associated
contract growers will invest an additional $98 million in poultry
production facilities. The Company expects to begin construction of
the facilities this summer, with initial operation of the new complex
scheduled to begin during the fourth fiscal quarter of 2009.
According to Joe F. Sanderson, Jr., chairman and chief executive
officer of Sanderson Farms, Inc., 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 the City
of Kinston, Lenoir 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. We believe 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. We are pleased that our recent financial
performance has put us in a 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 Stock Market under
the symbol SAFM.
This press release contains forward-looking statements based on
management's current views and assumptions. Actual results and events
may differ. For a discussion of these matters, please refer to the
"Cautionary Statement Regarding Risks and Uncertainties That May
Affect Future Performance" in Item 7 of the Company's 2007 Annual
Report on Form 10-K.
SOURCE: Sanderson Farms, Inc.
Sanderson Farms, Inc.
Treasurer & Chief Financial Officer