Sanderson Plans Back On For Kinston

Good economic news for Eastern Carolina as a poultry processor says it will proceed with plans to build in Kinston.

A year ago Sanderson Farms put on hold plans to build a new feed mill, poultry processing plant and hatchery on separate sites in Lenoir County and Kinston because of market conditions and escalating grain prices.

Thursday Sanderson's board approved plans to start construction later this summer and have initial operations running in the first quarter of 2011.

When completed the new facilities will employ some 1500 people and require 130 contract growers.

The cost of the project will top $120 million.

News Release

Sanderson Farms, Inc. Announces Dividend; Plans to Proceed with New Poultry Complex in North Carolina
LAUREL, Miss.--(BUSINESS WIRE)--Sanderson Farms, Inc. (NASDAQ: SAFM) announced today that its Board of Directors has approved plans to proceed with the construction and start-up of the Company’s Kinston, North Carolina, poultry complex. Sanderson Farms previously announced plans on April 24, 2008, to invest approximately $126.5 million for construction of a new feed mill, poultry processing plant and hatchery on separate sites in Kinston and Lenoir County, North Carolina. On June 26, 2008, the Company announced its decision to postpone the project due to market conditions and escalating grain prices. The budget for the project is now expected to be approximately $121.4 million.

The Kinston 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 production. The Company expects to begin construction of the facilities later this summer, with initial operation of the new complex scheduled to begin during the first quarter of fiscal 2011.

According to Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., “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. We are also proud to honor our commitment to the economic development and governmental officials in, and citizens of, the City of Kinston, Lenoir County and the State of North Carolina. 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. We look forward to working with the local communities in North Carolina that have graciously supported Sanderson Farms and this project.”

The Board of Directors also declared a regular quarterly cash dividend of $0.14 (fourteen cents) per share payable August 18, 2009 to shareholders of record on August 4, 2009.

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 2008 Annual Report on Form 10-K and please refer to the cautionary statement found in Management's Discussion and Analysis of Financial Condition and Results of Operations under the heading "General" in Part I, Item 2 of the Quarterly Report on Form 10-Q for the Company's second quarter ended April 30, 2009.

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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Tad Location: Jamesville on Aug 3, 2009 at 12:59 PM
    Lavon must have swallowed some feather while performing her job as a plucker.
  • by Tad Location: Jamesville on Jul 29, 2009 at 01:04 PM
    On behalf of the people of Kinston and Lenoir County, I would like to thank George Bush for the tax policies and economic capitalist theory employed by his administration that undoubtedly brought this economic growth to fruition. These jobs were sorely needed for both unskilled local labor and for all the illegals who live in Eastern North Carolina. Both are in plentiful supply. Kinston High School and Goldsboro High School worked very hard to get it's graduates and other attendees qualified to cut chickens up. If obuma would stop with his job killing spendulus bills and other blunders, take a cue from a more qualified man (Bush), cut some taxes and stop speaking stupidly, he may be able to generate some growth of some kind. It may not be great jobs that Bush produced, but it is jobs. The current bum in the White House is a job destroyer (unemployment soon to top 12 %). Bush created jobs to enable you to do what the cows suggest, "Eat More Chicken". Lavon, they'd hire you as a plucker.
  • by Kevin Location: Kinston on Jul 26, 2009 at 07:15 AM
    I'm all for progress but we will see what we see. What was Kinston voted for not too long ago, Best City or something? Now we will be called smelliest city. Just like most companies that come here, they burn up their free incentives to come here and then leave for better offers when all the free gifts are used up. Ten years from now this facility will be empty cause according to the govt. we need to eat more beef cause of the cows causing global warming with their hot air.
  • by Lavon Location: Goldsboro on Jul 24, 2009 at 12:40 PM
    John- Why do you and others consistently bash progress here in America. Where's your patriotism? Do you even love your country? I worked for Carolina Turkeys for 3 years about ten years ago. Part of the reason why a lot of people quit working there was because it is just too far out in the middle of nowhere and people got tired of driving that far to do that kind of work. Trust me it will be different with the plant in kinston because its a lot closer to where a lot of people live. At some point John you and a lot of others are going to have to stop hating and start supporting progress in your country. I know you hate that Obama's your President but don't hate your own country for it. I know how you feel though because I've been feeling that way for the last 8 years, It really suck to be you though!!!
  • by Tad Location: Jamesville on Jul 24, 2009 at 11:21 AM
    Only an idiot would think this plant is being built because of the false messiah, obuma.
  • by Anonymous on Jul 24, 2009 at 10:08 AM
    Don't feel bad, Tad. Mine was not posted, either.
  • by John Location: Mount Olive on Jul 24, 2009 at 09:24 AM
    Kinston, Don't grt your hopes too high just yet. You may be getting more than you are bargaining for. First off, most of the people in the Kinston area that needs a job or not workin; will not be willing to work in a poultry processing plant. Then they will have to recruit illegals to keep the production up. With this brings a burden to the local school systems and local social services as the illegal workers will have a large family sitting at home drawing off of the local scial system that you are having to pay taxes to support. The reason I know is that the same thing happened in northern Duplin County with Carolina Turkey. I have lived there all my life and Carolina Turkey has helped to make that part of North Carolina a little Mexico.
  • by Lavon Location: Goldsboro on Jul 24, 2009 at 07:55 AM
    No because of the recent uptick in the economy Sanderson Farms decided to go ahead and build in Kinston. Thanks you President Obama for your hard work for America. I just wish Bush cared about America like you did.
  • by Tad Location: Jamesville on Jul 24, 2009 at 07:50 AM
    I see that WITN protected Lavon's little feelings from my truthful comment. People eating more chicken has nothing to do with the obuma wasteful spending plan. Besides this expansion was planned during the Bush administration because of the growth of Sanderson Farm's sales during the Bush administration. Using Lavon's questionable logic, credit for these jobs should go to the Bush administration.
  • by Obama Who 2 Location: Kinston on Jul 24, 2009 at 05:47 AM
    You are so right Obama Who, you took the words right out of my mouth!!!!
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