Sanderson Farms Changes Plans for Second Plant16 November 2012
US - Sanderson Farms has announced that Nash County, North Carolina, will not be the site for a new poultry processing complex.
Sanderson Farms, who made this decision together with the officials of Nash County as a result of various timing issues, had previously announced that sites in Nash County had been selected for the location of a new poultry processing complex subject to various contingencies. The Company has also announced that construction of the new complex remains on hold pending improvement in market fundamentals, including the supply and price of corn and other feed grains.
Commenting on the joint decision, Robby Davis, a member of the Nash County Board of Commissioners who was responsible for recruiting Sanderson Farms to the area, said: "While we are disappointed that Nash County will no longer be considered for this project, we understand the need for certainty with respect to Sanderson Farms' ability to move forward with construction in a timely manner once the other contingencies are met. Unfortunately, various legal challenges will not allow us to meet Sanderson Farms' schedule without the possibility of delay. We are grateful for the very professional manner in which Sanderson Farms has negotiated with our board and staff during the entire process."
Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., said: "We very much appreciate the hard work of everyone in Nash County who worked diligently to recruit us to the area. We also appreciate the support of the local community and the business and political leaders who welcomed us to Nash County. We remain committed to our growth strategy and, toward that end, have been evaluating and will continue to pursue alternative locations that will enable us to continue our pattern of steady growth as market conditions allow. Today's announcement will affect the location, but not the timing, of the next poultry complex for Sanderson Farms."
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 Global Select Market under the symbol SAFM.
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