US-based chicken processing company Sanderson Farms has tentatively seleced sites in Smith and Wood Counties, Texas, to build a new feed mill, hatchery poultry processing plant and wastewater treatment facility.

The sites would feature a modern poultry complex with the capacity to process 1.25 million birds per week for retail chill pack customers.

Sanderson Farms chairman and chief executive officer Joe Sanderson said: “We are grateful for the cooperation from the economic development and governmental officials in Tyler, Mineola and Lindale, Texas; Wood and Smith Counties; and the State of Texas.

“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 for retail grocery customers.”

The new poultry complex would provide employment opportunities for nearly 1,700 people, and will be requiring 80 contract growers at full capacity.

At full production, the complex will be equipped to process and sell nearly 375 million pounds of dressed poultry meat per annum.

Around $200m will be invested at its new Texas complex and expects that the associated contract growers will invest an additional $135m in poultry production facilities.

The construction works for its new poultry complex is expected to begin later this year and would commence initial operations by Q1 2019.

Construction is subject to completion of tax abatement and incentive agreements with public subdivisions and the state of Texas and obtaining final required permits from appropriate agencies.