Lamb Weston forms JV with Sociedad Comercial del Plata

US-based frozen potato and vegetable products supplier Lamb Weston Holdings has formed a joint venture (JV) with the Argentinian firm Sociedad Comercial del Plata, with an objective to serve the nearly two-billion-pound South American market.

Under the terms of the agreement, each partner will own a 50% stake in the JV, Lamb Weston Alimentos Modernos.

Lamb Weston CEO Tom Werner said: “Our joint venture partner has more than 30 years of experience in the South American market, and we’re confident their depth of knowledge of the region combined with our operational expertise will allow us to expand and better serve our customers.

“South America is a strategic and growing market, and this joint venture will allow us to produce quality fries in Argentina and serve the broader South American region with an established partner.”

Lamb Weston Alimentos Modernos will operate a manufacturing facility located in Munro, Buenos Aires, Argentina with 130 million pounds of finished goods production capacity.

The JV company will sell frozen potato products under the Rapipap and Morixe brands.

Sociedad Comercial del Plata president Ignacio Noel said: “We are honoured to partner with Lamb Weston. We share the same values and business principles, as well as our passion for product quality and first-class service to our customers.

“Lamb Weston is one of the world’s leading suppliers of frozen potato products, bringing to the joint venture operational excellence and best practices.”

With this latest partnership, Lamb Weston currently operates 27 manufacturing facilities across the globe.

In June, Lamb Weston signed an agreement to acquire Australian frozen potato processor Ready Meals, for an undisclosed sum.