Pierce Chicken products, Pilgrim's Pride
Pilgrim’s Pride plans to enhance growth and expand production of its Pierce Chicken brand.

GREELEY, COLO. — Pilgrim’s Pride Corp. has unveiled a $190 million strategic capital investment plan designed to enhance growth and expand production of Pilgrim’s Pierce Chicken brand. The initiative, initiated in the fourth quarter of fiscal 2015, is part of a focused effort to reinvest cash flow back into the business to support sustained margin growth and improve efficiencies, Pilgrim’s Pride said.

Bill Lovette, Pilgrim's Pride
Bill Lovette, president and c.e.o. of Pilgrim's Pride

“We believe one of our competitive advantages is the valued partnership we provide to key customers,” said Bill Lovette, president and chief executive officer. “Our cash flow reinvestment plan will present opportunities for our customers to accelerate sales, improve profitability and grow their businesses. Importantly, this effort redirects cash flow back into an area of core business strength in order to maximize return on capital and enhance shareholder value.”

Pilgrim’s Pride said the cash flow reinvestment plan is tailored to meet customer needs through targeted capital spending in feed production, fresh chicken and prepared foods, including case-ready. Strategic investments within the plan include:

• An $18 million investment at a Pilgrim’s case-ready facility to streamline deboning and packaging processes;

• A $25 million investment at the company’s Moorefield, W. Va., prepared foods facility to enhance existing fully cooked chicken lines and add an additional line to meet growth demands for the Pierce Chicken brand;

• A $35 million investment to acquire property and construct a new feed mill in Nashville, Ark., to lower feed costs, enhance feed conversion and improve live poultry performance; and

• A $20 million investment at the company’s Mayfield, Ky., poultry complex to reengineer the facility to improve its value-added product mix in alignment with the needs of a key customer. The project will result in the addition of approximately 150 new jobs in 2016.

Fabio Sandri, Pilgrim's Pride
Fabio Sandri, c.f.o. of Pilgrim's Pride
“We are excited to have the opportunity to leverage our strong balance sheet to reinvest into our company,” said Fabio Sandri, chief financial officer. “Our strategy remains to explore every opportunity at our disposal to grow our business and create shareholder value. Today’s announcement reinforces Pilgrim’s commitment to operational excellence, sustainable growth and margin creation.”