Perdue Farms has announced plans to invest $3.7 million to expand production at one hatchery on Delmarva and another in eastern North Carolina as part of the company’s ongoing effort to improve operating efficiencies.

The investment will increase hatch production by 40 per cent at one of its Salisbury hatcheries and nearly double hatch production in Kenly, North Carolina. As a result, Perdue will close its hatcheries in Showell and Bishopville, Maryland, in early May of 2010.

Perdue will invest in new equipment and ventilations systems to accommodate the increased production in Kenly, while existing equipment from Showell and Bishopville will be installed at the Salisbury hatchery to handle the increased hatch production there.

The expansion will create five new positions in Salisbury and Kenly while eliminating 36 positions in Showell and Bishop. Affected associates were informed on 28 August about the plan to close the hatcheries in May. As is Perdue's practice, the company is committed to working with affected associates to offer them jobs at other Perdue facilities.

"The Showell and Bishopville facilities are outdated and require significant investment in facility maintenance and equipment to continue operating," said Mike Roberts, president of the Food Products Group.

"While these changes will not go into effect until early next year, we are letting our associates know now so they can take advantage of openings at other Perdue facilities should they be interested. Perdue is committed to assisting our Showell and Bishopville associates through this transition."

This investment will improve overall hatchery operations efficiency by more fully utilizing existing facilities.

"Maximising production in our hatchery operations is in line with our ongoing strategy to improve asset utilisation and competitiveness," said Mr Roberts.