Potato specialties production plant in Grobbendonk will be shut down early in 2016, McCain Foods Belgium’s management announced.

The production will be transferred to Leuze-en-Heinaut to a factory of McCain subsidiary Lutosa, but activities unrelated to the production will remain, according to the website www.lavenir.net.

“This decision potentially impacts 92 workers and 31 employees,” according to a McCain statement.

“The production costs at the Grobbendonk site are 25 per cent higher than at the Leuze site. Confronted with increasingly strong competition threatening McCain’s market position in the potato specialty sector, the current profitability of the Grobbendonk plant is insufficient to face these new challenges.”

On a voluntary basis, Grobbendonk employees affected by the closure are offered the opportunity to fill 42 new positions resulting from the expanded production in Leuze.

McCain Foods and PinguinNV have finalized the Share Purchase Agreement of the potato division of Pinguin Lutosa, in May 2014.

This acquisition encompasses the Lutosa brand, its frozen, chilled and dehydrated potato products, its two production facilities and its associated resources. This acquisition is a significant growth opportunity to further strengthen the McCain Group’s global position.