The proposed site, in the town of St Pauls, Robeson County, would comprise a state-of-the-art poultry complex, which would have the capacity to process 1.25m birds per week.
According to the firm, around 1,000 employees will be needed at full capacity, with the plant capable of selling approximately 500m lb of dressed poultry meat, per year.
The total investment would include upgrades to its feed mill in Kinston, North Carolina, and Sanderson said it anticipated that associated contract growers would invest an additional $168m in poultry production facilities.
Joe F Sanderson Jr, chairman and chief executive of Sanderson Farms, said: "We believe this expansion will enhance our ability to drive revenues and earnings and allow us to continue our record of building long-term value for our shareholders.
"The additional capacity of 1.25 million birds per week represented by the new complex will provide new marketing opportunities for the company in the fresh foodservice market. We are pleased that our recent financial performance has put us in a position to continue to grow our company."
Construction of the complex is expected to begin this summer, with initial operations to commence during the fourth quarter of 2016.