ARGENTINA — Frozen food products supplier, Lamb Weston Holdings, Inc. is preparing to invest US$240 million to build a new manufacturing facility in Argentina, to increase its French fry processing capacity in the South American region.
The construction project comes after the company raised its stake in Lamb Weston Alimentos Modernos SA, a joint venture with Sociedad Comercial del Plata in Argentina, increasing to 90% from 50%.
According to ResearchandMarkets, the global market for Frozen French Fries had an estimated value of US$15.1 Billion in the year 2020, and is projected to reach a revised size of US$20.1 Billion by 2027, growing at a CAGR of 4.2% over the period 2020-2027.
The Frozen French Fries market in the U.S. is estimated at US$4.1 Billion in the year 2020. Tapping into this market potential, Lamb Weston last year invested US$415 million into the expansion of its facility in American Falls, Idaho.
Our investment in a new french fry processing facility demonstrates our continued confidence in the growing global market for frozen french fries, and our commitment to serving our customers in Argentina and the broader South American market
China, the other market where Land Weston recently invested approximately US$250 million to build a new french fry processing facility is forecast to reach a projected market size of US$4.1 Billion by the year 2027 trailing a CAGR of 6.8% over the analysis period 2020 to 2027.
Tom Werner, the company’s president and chief executive, said, “Our investment in a new french fry processing facility demonstrates our continued confidence in the growing global market for frozen french fries, and our commitment to serving our customers in Argentina and the broader South American market.”
“We’re grateful for the partnership of Sociedad Comercial del Plata, and the expertise they’ve shared over the last three years. We felt it was the right time to increase our interest in the joint venture, and we look forward to continuing to work with them as we expand in the region.”
The new facility is expected to add 250 new jobs and should be completed in 2024. The increased production capacity will add to the 70,000 tonnes of finished goods produced in the joint venture’s existing facility in Munro, Buenos Aires, Argentina.
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