Lamb Weston to build $250m french fry processing facility in China

Frozen potato products producer Lamb Weston will make a $250m investment to expand its french fry processing capacity in China.

The investment will be used for constructing a new french fry processing facility in Ulanqab, Inner Mongolia.

Lamb Weston president and CEO Tom Werner said: “The french fry category is poised for growth globally, and China continues to be a critical market for us.

“This investment of in-country production for the China market is a clear example of our commitment to our strategic customers and supporting their growth plans well into the future.”

The new facility is expected to be completed in the first half of the company’s fiscal year in 2024.

Once completed, the new facility will produce more than 250 million pounds of frozen french fries and other potato products annually.

In addition to capacity expansion, the facility is expected to create 280 full-time employment opportunities and add to Lamb Weston’s existing in-country production facility in Shangdu, Inner Mongolia, China.

The company’s board of directors has also declared a quarterly dividend of $0.235 per share of Lamb Weston common stock, which will be paid to stockholders on 4 June.

Last December, Lamb Weston/Meijer acquired a significant stake in its existing joint venture (JV) with Russian potato processor Belaya Dacha Group.

The latest stake acquisition in the JV, which owns Russia’s largest french fry factory, is part of Lamb Weston/Meijer’s strategy to boost its position in the country’s potato market.

Engaged in growing and processing vegetables, the Belaya Dacha Group operates two production facilities in Moscow and one in the Republic of Tatarstan.