With the installation of a new French fries line, Aviko has tripled its capacity in China. In 2020, the Cosun subsidiary took over the factory from the Chinese Hongyuan Louis. The factory is located in Xilinhot, which is in Inner Mongolia. That is 600 kilometers north of Beijing.
With the new fries line, Aviko is responding to the sharply increasing demand for potato products in China and elsewhere in Asia. According to Aviko CEO, the step is in line with the growth ambitions of the company. It is certainly not the last growth step that the processor has, given the billboards that mention 2030 as the 'end date'.
Chinese activities
When Aviko acquired the Hongyuan Louis factory in 2020, it had an annual processing capacity of 50.000 tons of frozen fries. That is now 150.000 tons. Since 2007, the company has had a potato chip factory in Gansu, which is located in central China, almost 1.800 kilometers from the factory in Xilinhot near Bashang. In 2011, a fries factory was added, through a partnership with Snow Valley, but that deal ended in 2019. Two years later, it acquired 90% of the shares in Hongyuan Louis.
The official opening of the new line was attended by Royal Cosun CEO Hans Meeuwis, Maarten van Delst and Arwin Bos. A delegation from the Dutch embassy was also present. The Chinese market for fries is growing by around 10% annually, making it a very attractive country for potato processors. In addition, it has quickly emerged as an exporter of potato products, particularly in Asia, where it is now price-competitive with European factories.