Lamb Weston Holdings Announces $240 Million Capital Investment in New Fry Processing Line in Argentina

EAGLE, Idaho, September 6, 2022–(BUSINESS WIRE)–Lamb Weston Holdings, Inc. (NYSE: LW) today announced an expansion of French fries processing capacity in Argentina with the planned construction of a new manufacturing facility in Mar del Plata, Buenos Aires. The company recently increased its stake in its South American joint venture, Lamb Weston Alimentos Modernos SA, from 50% to 90%.

“Our investment in a new French fries processing plant demonstrates our continued confidence in the growing global frozen french fries market, and our commitment to serving our customers in Argentina and the South American market in general,” said Tom Werner, President and CEO of Lamb Weston. “We are grateful for the partnership of Sociedad Comercial del Plata and the expertise they have shared over the past three years. We felt this was the right time to increase our interest in the joint venture, and we look forward to continue to work with them as we grow in the region.”

The new French fries processing plant in Mar del Plata is expected to produce more than 200 million pounds of frozen french fries and other potato products annually for the 2 billion pound South American market.

Construction of the new line is expected to be completed by mid-calendar year 2024 and will create approximately 250 new jobs. The total investment is expected to be approximately $240 million, subject to inflation and prevailing exchange rates. This investment will be added to the production capacity of the joint venture’s existing manufacturing facility in Munro, Buenos Aires.

About Lamb Weston

Lamb Weston, together with its joint venture partners, is a leading supplier of potato, sweet potato, appetizer and frozen vegetable products to restaurants and retailers worldwide. For more than 70 years, Lamb Weston has led the industry in innovation, introducing inventive products that simplify back-end management for its customers and make things more delicious for their customers. From the fields where Lamb Weston potatoes are grown, to proactive customer partnerships, Lamb Weston always strives to do more and never settles down. Because when you look at a potato, you see possibilities. Learn more about us at lambweston.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Words such as “plan”, “continue”, “wait”, “invest”, “extend”, “grow”, “will”, “increase”, “add” and variations of these words and similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the company’s construction of a new manufacturing facility in Argentina, the global fry market, capital investments, and business outlook and prospects. . These forward-looking statements are based on management’s current expectations and are subject to uncertainties and changes in circumstances. Readers of this press release should understand that these statements are not guarantees of performance or results. Many factors could affect the Company’s actual financial results and cause them to differ materially from the expectations contained in the forward-looking statements, including those set forth in this press release. These risks and uncertainties include, among others: the availability and prices of raw materials; labor shortages and other operational challenges; the Company’s ability to successfully execute its long-term value creation strategies; the Company’s ability to execute large capital projects, including the construction of new production lines or facilities; the competitive environment and related conditions in the markets in which the Company and its joint ventures operate; political and economic conditions in the countries in which the Company and its joint ventures operate and other factors relating to its international operations; disruptions to the global economy caused by the war in Ukraine and the possible related increase in other known risks to the Company; impacts on the Company’s business due to health pandemics or other contagious epidemics, such as the COVID-19 pandemic, including impacts on demand for its products, increased costs, disruption supply, other constraints in the availability of key commodities and other necessary services or restrictions imposed by public health authorities or governments; levels of pension, labor and personnel-related expenses; disruption of the Company’s access to export mechanisms; risks associated with potential acquisitions, including the Company’s ability to make acquisitions or integrate acquired businesses; its debt levels; changes in the Company’s relationship with its producers or significant customers; the success of the Company’s joint ventures; government actions and regulatory factors affecting the Company’s business or joint ventures; the final outcome of any litigation or any product recall; the Company’s ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; and other risks described in the Company’s reports filed from time to time with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on the forward-looking statements included in this press release, which speak only as of the date of this press release. The Company assumes no responsibility for updating these statements, except as required by law.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220906005274/en/

contacts

Investor Relations:
Dexter Congbalay
224-306-1535
[email protected]

Media:
Shelby Stool
208-424-5461
[email protected]

Comments are closed.