Aviko, the Dutch potato processor and subsidiary of agro-food cooperative Royal Cosun, is significantly expanding its production operations in China to meet rising demand across the Asian market. The company is increasing its annual output capacity for potato flakes and granules in the country by 70%, further cementing its position as a global leader in the sector.

The expansion includes the recent commissioning of a new chip line at Aviko’s Xilinhot plant, which has tripled the facility’s total capacity. A larger strategic investment is underway at the company’s Gansu site, focused on meeting the growing appetite for dried potato ingredients used in a range of products—from mashed potatoes and snacks to soups, sauces, and ready meals.

“Potato flakes and granules are seeing strong demand globally, particularly in fast-growing regions like China and Southeast Asia,” said Maarten van Delst, CEO of Aviko. “This expansion fits perfectly with our parent company Cosun’s Unlock 30 strategy, which is aimed at building a solid earnings model, value-driven growth, and a future-proof sustainable supply chain.”

Aviko’s Gansu factory has operated for over 15 years as a joint venture with the local government of Minle County, where the company holds a majority stake. The site was chosen for its agronomic advantages—favourable climate, access to suitable land for growing flake-grade potatoes, and robust local infrastructure.

The local government is supporting the expansion with targeted investments in water supply, farming infrastructure, and the construction of an additional 50,000 tonnes of potato storage capacity. These upgrades are designed to ensure year-round supply stability and to accommodate the site’s larger processing volumes.

While Aviko sources its raw material for the Gansu site predominantly from Chinese growers, the increased capacity opens new possibilities for collaboration with Dutch supply chain partners. Van Delst noted that the Gansu facility will enhance Aviko’s ability to serve both local and international markets, with continued emphasis on sustainability, efficiency, and economies of scale.

The new production line at Aviko Gansu is expected to become operational by the end of 2027, contributing to more efficient and environmentally responsible potato processing. The expansion aligns with the company’s broader ambition to reinforce its leadership in the global dried potato ingredients market while delivering on its sustainability commitments.

Aviko currently processes more than 2 million tonnes of potatoes annually across its global operations.