With an investment of USD250m, Lamb Weston is advancing in the construction of a gigantic potato processing factory on a 55,000 square meters property in Mar del Plata, Argentina.

The plant is expected to come online in July next year, which will involve the creation of between 200 and 250 direct jobs, along with more than 3,000 indirect jobs, according to La Nacion.

While the main business is frozen pre-fried potato, 4,000 tons of flake puree and 1,750 tons of potato starch will also be produced annually. In the latter two cases, the products will be for the domestic market, since Argentina usually imports them.

In a ceremony held recently at the construction site, top management representatives of the company explained the fundamentals of the business.

According to Clarin Rural, Gerardo Scheufler, Lamb Weston’s Chief Supply Chain Officer, mentioned that the company had discovered the “extraordinary competitive potential of potato production in Argentina”. He thinks that the location is strategic, in a world that pays close attention to production processes and it measures the carbon footprint in all the links in the chain, where transport plays a more relevant role.

In the production area close to Mar del Plata, 50% of the Argentine potato is produced, with a high technological level and expertise on the part of the growers.

“With this plant up and running, we are going to produce to serve 3m servings of potato chips per day around the world,” Scheufler added.

Federico Peralta Ramos, CEO of Lamb Weston Alimentos Modernos, highlighted the impact of the investment on job creation, both in construction and operation. And the “diffusion effect”, generating infrastructure that will be shared by other activities in the region.

More than 90,700 tons of Frozen French Fries

In September 2022, Lamb Weston Holdings, Inc. announced an expansion of French fry processing capacity in Argentina with the planned construction of a new manufacturing facility in Mar del Plata, Buenos Aires. The company also increased its stake in its South American joint venture, Lamb Weston Alimentos Modernos S.A. from 50% to 90%.

“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,” Tom Werner, President and CEO of Lamb Weston, said at that time

The new French fry processing facility in Mar del Plata was expected to produce more than 90,700 tons of frozen French fries and other potato products per year for the 907,100 tons South American market.

Construction of the new line was expected to be completed by the mid-calendar year 2024 and should add approximately 250 new jobs. The total investment was expected to be approximately USD240m, subject to inflation and exchange rates at the time. This investment would add to the capacity produced at the joint venture’s existing manufacturing facility in Munro, Buenos Aires.