Clarebout bets on monster growth

The Belgian business newspaper From Tijd spoke to owner Jan Clarebout about it the growth plans. The ambition is that a maximum of 2.300 tons of frozen fries and 500 tons of related products can be produced per day at the new production location. This monster growth immediately generated many responses.

Mega increase
Today, a modern chip factory runs with an efficiency of between 55% and 60%. Over the past decade, a lot has been invested in new techniques, which, among other things, make it possible to achieve the highest possible return with varying potato quality (underwater weight). However, the return remains dependent on nature. The underwater weight and the size selection (length) then determine the efficiency.

A daily production of 2.800 tons of end product therefore roughly means a daily raw material requirement of between 3.900 and 4.000 tons. You are then talking about volumes of up to 1,4 million tons (annual basis), assuming a production of 50 weeks. If 45 tons per hectare is calculated, you arrive at an area of ​​over 30.000 hectares.

Maximum capacity
It's no wonder the numbers are being questioned. In the interview, Clarebout emphasizes that the figures concern the maximum capacity of the location to be built. The question is whether and when the capacity can be achieved. The capacity of the factory in Frameries is at maximum 40% more than the current locations in Nieuwkerke and Waasten together.

In reality the numbers will be lower. Various Belgian news sites talk about a total of 500.000 tons annually, over 2 lines and with growth opportunities up to 4 production lines. The current 2 factories produce approximately 700.000 tons of frozen fries annually.

Potato hotspot
Clarebout consciously chooses the town of Frameries, which is located between Mons and Valenciennes. According to the family business, the region is very suitable for potato cultivation. It already has a storage location for 9.000 tons, which is filled with product from local growers. It also has 200 growers in a radius of 50 kilometers around the city. In addition to the good Walloon agricultural land, the company sees enormous growth opportunities in the neighboring French department of 'Hauts-de-France'. This area has more than 3 million hectares, making it larger than Belgium. 

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Europe's largest French fries producer employs 1.300 permanent employees. The new factory should create another 300 to 500 jobs, which should give the old industrial region a significant boost and the Walloon authorities are very happy with that.

Real vision of the future
Spokesman Danny Wiels is down-to-earth about the ambitious plans, which will cost at least €300 million. “This could amount to €500 million,” he said. "The project also covers a period of 10 to 15 years." The plans are still subject to change, as was said at the press conference on Tuesday, January 15. A feasibility study is currently being conducted and the necessary permits have not yet been obtained. If the lights are green, construction can start at the end of 2019 or early 2020. A second cold store is now being built at the location in Waasten.

In 2017, Clarebout had a turnover of €653 million, with a profit of €63 million. Approximately 75% of production is sold in Europe and 20% is sold outside of Europe. The company does not have its own brands, but only supplies under private label to supermarket chains and large customers.

Is it attainable?
The future will show whether such monstrous growth is feasible. Clarebout is also down-to-earth about this. Clarebout can partly provide the required area with more to contract among existing growers, but also through expansion in new cultivation areas across the French border. A required area of ​​30.000 hectares represents 32,5% of the current Belgian area. That is not entirely fair, since France must also be included. Belgian processing and export figures also see an explosive increase due to Clarebout.