Sanderson Farms to build new poultry complex

Sanderson Farms Inc. said on Monday (March 29) it is seeking to build a new poultry complex near Goldsboro, North Carolina.

The Laurel, Mississippi-based company said it would invest some US$94 million in the new big-bird deboning complex, a consideration first mentioned late last year. Construction is expected to begin in the second quarter of fiscal 2011 and operations are expected to begin in the third quarter of 2012.

If completed, it would consist of an expansion of the feedmill for the company's Kinston, North Carolina, complex. Construction of the Kinston complex, which will process 1.25 million birds a week is already underway.

Sanderson said both North Carolina facilities would represent a 30% increase to the company's processing capacity and should provide steady production growth through 2014.

Meanwhile, Sanderson Farms also announced a public offering of 2 million common shares, proceeds of which will be used with other funds to finance the construction of the Kinston complex and the potential new plant in Goldsboro.

The proceeds may also be used to reduce debt and invest in cash and cash equivalents. Some of the invested proceeds may be used as working capital and for general corporate purposes.