Lamb Weston Holdings, Inc. has announced plans to close its potato processing facility in Munro, Buenos Aires Province, Argentina, and consolidate regional production at its newer, state-of-the-art site in Mar del Plata. The decision was disclosed in an official press release issued on January 8, 2026, and forms part of a broader effort to improve profitability and operational efficiency across the company’s global manufacturing network.

According to the company, the Munro closure is intended to streamline Lamb Weston’s Latin American footprint by concentrating production in a more modern facility designed to support long-term manufacturing needs. The Mar del Plata plant, which will assume production previously carried out in Munro, is positioned as a central hub for the region, reflecting the company’s emphasis on operational focus and asset modernization.

“These actions are part of our broader strategy to improve profitability and enhance operational efficiency across our global manufacturing network. Effectively managing costs across our supply chain is critical to delivering value to customers, while enabling us to prioritize investments that modernize physical assets and keep operations efficient, resilient and ready for future growth,” said Sylvia Wilks, Chief Supply Chain Officer at Lamb Weston Holdings, Inc., in the announcement.

Approximately 100 employees are expected to be affected by the Munro plant closure. Lamb Weston stated that those impacted will receive severance packages in line with local legal requirements and regulations in Argentina. The company did not disclose a specific timeline for the shutdown or provide further operational details regarding the transition of production volumes between the two sites.

The consolidation in Argentina is not an isolated action. As part of the same announcement, Lamb Weston also confirmed plans to temporarily curtail one production line at a facility in the Netherlands. While no additional information was provided regarding the duration or scope of this curtailment, the company framed both actions within a coordinated approach to managing capacity and costs across its international operations.

Lamb Weston described these measures as part of its ongoing execution of the Focus to Win strategy, a company-wide framework aimed at prioritizing selected markets and channels, strengthening customer partnerships, achieving executional excellence, and accelerating innovation. The strategy has been referenced by the company in previous communications as a guiding structure for investment decisions, operational adjustments, and long-term value creation.

From an industry perspective, the decision underscores the continued reassessment of manufacturing footprints by global frozen potato suppliers, particularly in regions where demand patterns, logistics considerations, and cost structures are evolving. By concentrating production in fewer, more modern facilities, processors seek to balance efficiency with resilience, while maintaining service levels for both foodservice and retail customers.

Lamb Weston operates a broad manufacturing and distribution network across North America, Europe, and Latin America, supplying frozen potato products to restaurants, quick-service restaurant chains, and retailers worldwide. The company has positioned operational efficiency and innovation as central pillars of its strategy, particularly as it navigates shifting market conditions, cost pressures, and investment priorities across multiple regions.

In its forward-looking statements included with the press release, Lamb Weston emphasized that the announced actions are based on current management expectations and are subject to a range of risks and uncertainties. These include consumer demand dynamics, input cost volatility, operational challenges, and broader economic and geopolitical factors that could influence business performance and outcomes. The company cautioned readers not to place undue reliance on forward-looking statements, noting that actual results may differ materially from expectations.

For the Latin American potato processing sector, the closure of the Munro plant and the consolidation of production in Mar del Plata signal a shift toward fewer, more centralized processing assets operated by multinational suppliers. While the company did not elaborate on capacity levels or technological specifications at the Mar del Plata facility, its characterization as a modern site suggests alignment with Lamb Weston’s stated objective of investing in assets that support efficiency, resilience, and future growth.

As Lamb Weston continues to execute its Focus to Win strategy, further adjustments to its global manufacturing network may follow, particularly as the company evaluates performance, cost structures, and demand across its operating regions. For now, the Munro closure represents a significant step in reshaping the company’s Latin American operations, with implications for employees, regional supply chains, and the competitive landscape of frozen potato processing in the region.