Bosses at the 2 Sisters chicken factory in Coupar Angus have won approval for a £100 million expansion.
The firm’s existing plant will be demolished and replaced with a modern complex on neighbouring farmland.
The site of the old factory will be cleared to make space for smaller business units and up to 49 new homes.
And Perth and Kinross Council and the Scottish Government are in talks with the company about potentially bankrolling the new scheme.
The 2 Sisters Food Group factory employs more than 1,000 people at present. It is by far the largest employer in the Coupar Angus area.
Chiefs say the replacement is essential if they are to remain in the area.
Perth and Kinross Council’s planning committee considered the application from 2 Sisters’ parent company Amber Rei Holdings on Wednesday.
Councillors unanimously agreed to grant planning permission in principle for the development.
Planning agent James Wall told them the goal is to have the new factory operational within three years.
The redevelopment of the old site could take another three years.
“The existing facility is coming to the end of its life and is not fit for modern standards,” he said.
“Failure to secure the future of a new plant in Coupar Angus would mean alternative locations elsewhere in the UK would need to be considered.”
New chicken factory will lessen noise, odour and parking impact on Coupar Angus
Councillors were told up to 70 more new jobs could be created at the business units which will replace the old factory.
And 25% of the new homes will be affordable.
Additional parking spaces are planned for the new plant. This should help to prevent overspill into nearby streets.
It will also be further away from existing houses. This should help to reduce odour and noise problems for neighbours.
Sepa has objected in principle, saying there is a potential for flooding.
But the developer says it is confident its mitigation measures will not increase the risk of flooding
Chicken factory crucial to Coupar Angus and Scotland
The committee was told the council is in discussions with 2 Sisters and the Scottish Government about funding for the scheme, given its importance to the national poultry industry and to wider food production.
One option might be a 20-year landlord-tenant arrangement, with an option for the company to buy the plant after five years.
This would involve the council borrowing money, which would in turn require a guarantee from the Scottish Government.
Planning committee convener Ian Massie said he fully supported the application.
“In-principle planning permission for this new facility will not only secure the jobs in Coupar Angus and the surrounding area, but will also help to support poultry production in Scotland and therefore help maintain Scotland’s food security,” he said.
Council responds to funding talks
Speaking after the meeting a Perth and Kinross Council spokesperson said: “The proposed new processing facility at Coupar Angus is part of a £250 million investment in the Scottish poultry industry by the 2 Sisters Food Group and its parent company.
“As such the council, Scottish Enterprise and the Scottish Government are working together to secure this project which could, alternatively, be located elsewhere in the UK or mainland Europe.
“Any involvement by a public sector body in the construction of the new facility is hypothetical at this stage.
“Should a business case be made by the company, public sector investment could only be considered on the basis that there would be no cost to taxpayers.”
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