Tyson Foods to build $320m poultry plant in eastern Kansas

US poultry market leader Tyson Foods is planning further expansion with a move to build a $320m complex in eastern Kansas.

The company will build a processing plant, hatchery and feed mill close on a 300-acre to the city of Tonganoxie, creating around 1,600 jobs.

Tyson Foods already employs around 5,700 people in Kansas.

The processing plant will have capacity to process 1.25m birds a week and is expected to generate an annual economic benefit of $150m for the state of Kansas.

Tyson Foods said it would work with local farmers and ranchers to raise the birds.

Production is due to begin in mid-2019 and the company says its decision to expand is a response to strong demand for chicken.

Chief executive and president Tom Hayes said in a statement: “We believe this new operation, which will incorporate the latest production technology, will enable us to meet the sustained growth in consumer demand for fresh chicken.”

The company announced last month in its third quarter financial reporting that it was nearing the end of a record year of earnings per share and operating income and was looking forward to an excellent 2018.

In its report, it said that it would build its chicken business through “continued capacity expansion, No Antibiotics Ever and organic products, innovation and strong support of the Tyson brand.”