Food group Aviko is going to significantly expand its production capacity of potato flakes in China. The group, which claims to be the world market leader in the production of potato flakes and granules, is responding to the growing demand for potato products on the Asian market.
This was announced by the group, part of Royal Cosun. The expansion of the capacity of the flake factory in the province of Gansu, in the northwest of China, must be completed by the end of 2027. The investment amount was not disclosed. Earlier this month, Aviko celebrated the expansion of a French fries line at one of its production locations in Xilinhot, China. With this, the potato processor tripled the capacity of this factory. According to Aviko, its own processing capacity in China will grow by 70% on an annual basis with these investments.
Key growth markets
Maarten van Delst, CEO of Aviko, said in the statement: "With Aviko, we have ambitious growth plans and are actively responding to the global increase in demand for potato flakes and granules, driven by the growth of salty snacks on all five continents. In addition to Europe, China and Southeast Asia in particular are important growth markets. The factory in Gansu enables us to serve both local and international customers even better and to further strengthen our position in this region."
The flake factory in Gansu has been a joint venture between Aviko and the local government of Minle County for fifteen years, in which Aviko has a majority stake. To support the expansion, the local government is investing in 50.000 tons of additional potato storage capacity, as well as in water supply and agricultural infrastructure, according to Aviko. Potato flakes are used worldwide in products such as mashed potatoes, ready-made meals, snacks, bakery products, soups and sauces.
Aviko processes more than 2 million tons of potatoes worldwide each year into products such as fries, potato specialties, flakes and granules.