The new facility is expected to produce more than 200 million pounds of frozen french fries and other potato products per year for the 2-billion-pound South American market.
The company expects to complete the construction of the new line by mid-2024 and create approximately 250 new jobs.
The total investment in the project is estimated to be approximately $240 million, subject to inflation and exchange rates at the time.
“Our investment in a new french fry processing facility demonstrates our continued confidence in the growing global market for frozen french fries, and our commitment to serving our customers in Argentina and the broader South American market,” said Tom Werner, president and CEO of Lamb Weston.
“We’re grateful for the partnership of Sociedad Comercial del Plata, and the expertise they’ve shared over the last three years. We felt it was the right time to increase our interest in the joint venture, and we look forward to continuing to work with them as we expand in the region.”
The company, which has been operating for more than 70 years, offers innovative products that simplify 'back-of-house management' for its customers.
In the fourth quarter of 2021, Lamb Weston reported a 19% growth in net sales to $1 billion, while net income increased to $66 million in this period from a loss of $2 million in the same period in the previous year.