US company Lamb Weston is one of the largest producers and processors of frozen french fries and other frozen potato products in the world.
Each partner will own 50% of the new joint venture, announced last week, which will be called Lamb Weston Alimentos Modernos.
Lamb Weston Alimentos Modernos will sell frozen potato products under the Rapipap and Morixe brands manufactured in its factory in Buenos Aires, with an annual capacity of around 60,000 tonnes of finished goods. Morixe’s portfolio of products also includes flour, polenta, olives, and olive oil as well as frozen potatoes and fries.
Financial details of the transaction were not disclosed.
Tom Werner, the CEO of Lamb Weston, said it was confident SCP’s depth of knowledge of the South American region, where it has more than 30 years of experience, combined with Lamb Weston’s operational expertise would allow the newly-formed joint venture to expand and better serve Latin American 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.”
This announcement brings the number of manufacturing facilities operated by Lamb Weston both independently and through joint ventures to 27.
The president of Buenos Aires-headquartered SCP, Ignacio Noel, said it was honored to partner with Lamb Weston. "[They] will bring to the joint venture operational excellence and best practices," he said.
Sociedad Comercial del Plata is a holding company with industrial activities in the agribusiness sector as well as energy, construction materials, rail transport, entertainment, and real estate. It counts 1,400 employees in Argentina
Its agri-food Its main food business is Omega Grains, which produces ingredients for the food, feed and pharmaceutical industries using crops.
Through one of its Omega Grains projects, SCP is looking to scale up the production of healthy omega-3 fatty acids using camelina sativa as a source. Known as German sesame or false flax, camelina is rich in polyunsaturated omega-3 oil and omega-6.
