ConAgra Foods Lamb Weston Announces Plans to Build New Sweet Potato Processing Plant near Delhi, Louisiana
August 05 2009 - 10:52AM
Business Wire
ConAgra Foods Lamb Weston announced today plans to build a new,
state-of-the-art, environmentally friendly processing plant near
Delhi, La., designed primarily to process high-quality sweet
potatoes from the region into fries and related products. The new
plant is scheduled to open in November 2010, and will create
approximately 275 jobs when it opens for operation. Future
expansion could increase the total number of jobs created to more
than 500.
Sweet potatoes are one of today’s hottest food trends with per
capita consumption up 21 percent in the past five years according
to the USDA. A 2007 Technomic survey showed that 85 percent of the
general population is favorably inclined toward sweet potatoes.
“We’ve learned from our extensive experience with sweet potatoes
that they require special handling and processing,” said Jeff
DeLapp, president, Lamb Weston. “This new processing plant is
uniquely designed to enhance the quality of our sweet potato
products in the most efficient way, which allows us to continue
bringing value to our customers. Those customers, including some of
the largest quick-service restaurant chains, seek consistent,
high-quality sweet potato fries and other sweet potato products. We
look forward to meeting the strong and growing demand for these
potato products.”
“This significant investment is indicative of the big
opportunity we see in our potato platform,” said Gary Rodkin, CEO,
ConAgra Foods. “Potatoes, including sweet potatoes, are a strategic
priority for ConAgra Foods, and we are committed to expansion in
this area. This new plant will further our North American
leadership position in potatoes by supporting growth in an adjacent
category, and add to our worldwide presence.”
The plant will be one of the first food plants in the country
built from the ground up with the newest and best processing and
packaging technologies in the industry, and will follow LEED
(Leadership in Energy and Environmental Design) standards for
environmentally sustainable construction. The plant’s sustainable
building design will provide multiple environmental, economic,
health and community benefits, including a substantial reduction in
energy usage and water conservation. In addition, the plant’s
design will incorporate such features as natural lighting and
minimally irrigated landscaping. The plant design has been
registered with the United States Green Building Council.
“The modular design of the facility allows us tremendous
flexibility to expand or modify production for other types of
products, including traditional potato items, depending on customer
and consumers needs,” DeLapp said.
Lamb Weston currently markets sweet potatoes to restaurants
under the Sweet Things® brand. The company also offers a line of
all natural sweet potato products under the Alexia® brand through
supermarkets and specialty stores.
“Today’s announcement that ConAgra Foods, a leading Fortune 500
company, has chosen to make a major investment in Louisiana is
further evidence of why our state continues to buck national
economic trends,” said Louisiana Gov. Bobby Jindal. “ConAgra Foods
joins a prestigious list of companies that have recently recognized
our state’s potential by announcing new investments here –
nationally recognized names like Albemarle, Foster Farms, The Shaw
Group, Northrop Grumman, ExxonMobil, EA, Coca-Cola, Gardner Denver
and the new V-Vehicle Company. The reforms we have made to
establish a strong economic environment continue to pay off.”
“Lamb Weston is already a leading provider of frozen sweet
potato products to restaurants and retailers around the world, and
we look forward to continuing to grow that leadership position with
this significant investment,” said DeLapp. “Not only is the state
of Louisiana known for its high-quality sweet potatoes, it offers a
great environment for business and a skilled workforce. Governor
Jindal and Louisiana Economic Development have gone out of their
way to make this plant possible, and we are grateful for their
support.”
“ConAgra Foods’ choice of Louisiana is part of an emerging trend
in which Louisiana has become increasingly successful at attracting
value-added agribusiness projects,” said Secretary Stephen Moret,
Louisiana Economic Development. “Like Zagis USA and Dynamic Fuels,
both of which broke ground last year, ConAgra Foods will capitalize
on Louisiana’s strengths in the agricultural sector and leverage
those strengths to create new products that are appealing to the
marketplace. We will continue to aggressively and strategically
pursue value-added agribusiness projects, as well as others in
emerging growth sectors that will help position Louisiana for
diversified, sustainable growth.”
Initially, the company will spend approximately $155 million
constructing the plant. The company’s total investment in the plant
could exceed $200 million by 2014 if growth plans are met.
As part of the state’s incentive package, ConAgra Foods Lamb
Weston will receive a grant of $32.4 million to $37.4 million
toward site infrastructure and plant processing equipment from the
Mega-Project Development Fund, if all performance measures are met
relative to capital investment and payroll commitments. The
long-term, full scope of the project has yet to be finalized, and
will be determined, in part, by ConAgra Foods’ access to existing
federal incentives. ConAgra Foods hopes that a meaningful portion
of its capital investment near Delhi can be made through the
federal New Markets Tax Credit Program, which would permit the
company to receive a federal income tax credit in connection with
the investment.
About ConAgra Foods Lamb Weston
ConAgra Foods Lamb Weston is North America’s premier supplier of
frozen potato, sweet potato, appetizer and vegetable products,
serving both the foodservice and retail industries. For more
information, please visit us at www.lambweston.com
About ConAgra Foods
ConAgra Foods, Inc., (NYSE: CAG) is one of North America’s
leading packaged food companies, serving grocery retailers, as well
as restaurants and other foodservice establishments. Popular
ConAgra Foods consumer brands include: Banquet, Chef Boyardee, Egg
Beaters, Healthy Choice, Hebrew National, Hunt’s, Marie
Callender’s, Orville Redenbacher’s, PAM and many others. For more
information, please visit us at www.conagrafoods.com.
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