Gov. Steve Beshear's office says the project will upgrade equipment and add processing capacity for Tyson's frozen chicken products.
The subsidiary of Tyson Foods Inc. plans to invest $8.2 million.
The Robards facility plans to replace one of its freezers and increase processing capacity.
Tyson Chicken has been part of the Robards community since 1995 and currently employs 1,200 Kentuckians.
The Kentucky Economic Development Finance Authority has preliminarily approved Tyson for performance-based tax incentives up to $750,000.
Tyson Chicken also was approved for tax benefits up to $100,000 through a program allowing companies to recoup state sales and use tax on construction costs, building fixtures and equipment used in research.
