Tyson Foods is investing $208 million to build a poultry rendering plant near Hanceville, Ala.
The new facility, expected to be ready next year, is replacing Tyson's River Valley Ingredients plant, which was destroyed in a fire over the summer.
Tyson said it will retain the 124 employees from the older plant during the two-year construction period.
The 121,000-square-foot rendering plant, which will break down and cook poultry parts into usable proteins and fats, is Tyson's largest investment in Hanceville to date.
Poultry processors and food companies have come to rely on similar facilities to achieve corporate sustainability goals.
"This facility has provided hundreds of jobs in Cullman County for years and the new plant will continue that legacy," Jeff Clemons, commission chairman of Cullman County, said in a written statement.
The night of the fire, dozens of fire departments responded to the blaze to help limit the damage. Tyson supported several of them for their efforts.
Shares of Tyson fell less than 1%, or 61 cents, to close Thursday at $97.79.