Lamb Weston to invest $250m for new french fry processing line at Hermiston facility

US-based supplier of frozen potato and vegetable products Lamb Weston Holdings (Lamb Weston) is planning to expand its french fry processing capacity in North America as well as increase its quarterly dividend.

The frozen potato supplier intends to expand operations at its processing facility in Hermiston, Oregon, with an investment of $250m.

The investment will see the construction of a french fry line, which will be capable of processing 300 million pounds a year and modelled on its recently operational production line in Richland, Washington.

Construction is slated for completion by the fourth quarter of the 2019 fiscal year.

Lamb Weston president and CEO Tom Werner said: “The french fry category has been growing at attractive rates around the world, and we believe industry capacity has been challenged in recent years to keep up with continued growth in market demand.

“This investment in a new french fry processing line in the Columbia Basin reflects Lamb Weston’s continued commitment to support our strategic partners as they continue to grow their businesses in North America and abroad.”

The addition of the new french fry line will also see the creation of nearly 170 full-time employment positions at the Hermiston facility.

Oregon governor Kate Brown has agreed to provide financial assistance for the new initiative from the state’s Strategic Reserve Fund.

The funding will be used to support infrastructure development at the site and workforce training and diversification.

Governor Brown said: “I’m happy to announce this new state investment as part of my focus on growing a thriving Oregon economy in all parts of our state.

“In addition to supporting our rural economies and booming agriculture industry, this investment provides critical workforce training opportunities in well-paying jobs in Eastern Oregon.”

Lamb Weston board of directors have also declared a quarterly dividend of $0.19125 per share, which will be paid to the stockholders on 2 March.