Koch Foods is investing $145.5 million to expand production at a Mississippi chicken plant as consumers continue to opt for poultry in an inflationary environment.
Koch is “rehabbing” its facility in Morton and will build out its processing and distribution operations, according to the Mississippi Development Authority. The project will create 128 jobs over the next five years.
Koch, founded in 1973, is the sixth-largest U.S. poultry processor with operations in Alabama, Georgia, Ohio, Tennessee and Illinois. Despite similarities in name, Koch has no relation to Koch Industries.
“This is another big win for Mississippi,” Gov. Tate Reeves said in prepared remarks. “We have a pro-business mindset, skilled workforce and prime location that offers efficient access to major domestic and international markets.”
Koch will receive tax credits for the project under the state’s flexible tax incentive program, the MDA said.
The investment comes as competing chicken companies evaluate their operations, closing some plants while investing in others during a difficult farm economy. Koch spent $220 million expanding its poultry plant in Fairfield, Ohio last year, and moved forward with plans to construct a cold storage facility nearby.
Competitor Tyson Foods opened a 325,000-square-foot chicken nugget facility in Danville, Virginia, last year with automated case packing lines and robotic palletizing units. The same company closed six chicken plants that year and laid off hundreds of workers to shore up costs.