Jun 30, 2016Lamb Weston/Meijer to build french fry plant in Russia
Lamb Weston/Meijer Frozen Foods have signed an agreement with Belaya Dacha to invest in a new french fry plant in Lipetsk, Russia. The joint venture will serve a growing potato market in Russia. The total investment will be over EUR 100 million.
Belaya Dacha will be the majority shareholder. To secure potato supply, the joint venture will make use of its own farm in the Tambov region.
The new factory will be the first french fry factory in Russia, according to a press release. It will be constructed in the special economic zone in Lipetsk, situated 450 km south of Moscow. This project will be financed with equity and long-term financing from Sberbank, Lamb Weston said. The start of the construction is planned by mid-2016 and production is projected to start early 2018. The french fry plant, with a production capacity of 90,000 tons per year, will be supplied by a network of Russian farmers.
The transaction is subject to approval by the Russian Federal Anti Monopoly Service.
Photo: Lamb Weston