6.000 hectares required
200 million for McCain French fries production in the US
Residents of the American town of Burley are in a jubilant mood. Potato processor McCain Foods USA announced on May 3 that it is investing $200 million in expanding its chips factory. It is the latest chapter in the company's strong investment drive.
The capital injection of 200 million dollars (converted 182 million euros) will create 180 new jobs. The municipality, province and state are therefore very happy. The current factory will be expanded with a new production line. The construction of a number of new sheds will start in May. The new production line is expected to be operational in the summer of 2018, news site writes Magic Valley.
6.000
hectare
Entire state benefits
It is by far the largest investment made in the town in years. McCain receives a tax break of 30 percent from potato state Idaho over 15 years. Good for a windfall of $5,86 million. The intention is that the entire state, where most potatoes are grown in the US, will benefit from the expansion. To keep the new line running, an area expansion of at least 6.000 hectares is required. A growing area from eastern Idaho to the Oregon border has been earmarked for this purpose. Idaho's gross domestic product is expected to grow by $560 million over 20 years. Another $20 million will be invested by the state in the potato sector over a 20-year period.
McCain's Investments:
- March 2017: 114 million euro factory Scarborough, England
- January 2017: 180.000 tons of extra French fries production capacity in the Belgian Lutosa factory
- July 2016: $65 million New Brunswick, Canada plant
- July 2015: 10 million dollar storage facility Australia
- February 2015: 20 million euros factory Harnes, France
New construction after renovation
McCain already had plans for an expansion in 2014, but then decided to renew the existing production facilities. Good for a cost of $40 million. “In 2016, we reviewed all of our plants in North America and decided to expand in Burley,” said North American Regional Director Jeff DeLapp. 'The availability of high-quality potatoes, sufficient staff and strong support from the state were the deciding factors for us.'
Investment drive
The Burley factory was set up in the 60s by Ore-Ida Foods. An acquisition by Heinz Co followed, who sold it to McCain Foods in 1997. With 51 factories worldwide, the company claims to be the largest French fries producer in the world.
In March of this year, the company announced that it was investing 114 million euros in its British factory. McCain's Lutosa plant in Belgium received a capital injection in June and just a year ago a plant in Canada was also supported with $65 million. In addition to substantial investments, the company also closed factories in the United States and Australia, among others.
Niels van der Boom
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